Aug. 31 (Bloomberg) -- Stephan Goetzl, president of cooperative banks in the German state of Bavaria, said he rejects plans by European Union Financial Services Commissioner Michel Barnier to subject cooperative lenders to supervision by the European Central Bank.
Barnier’s plans are driven by power considerations and come amid calls in Europe to damp Germany’s economic expansion, Goetzl said. It would be “fatal” to allow control over cooperative banks, which finance Germany’s medium-sized businesses, he said in an e-mailed statement.
“Whoever submits regional banks such as cooperative banks to a diktat by the ECB, surrenders the sovereignty over the financing of medium-sized companies,” Goetzl said. There is also “no reason” to follow Barnier’s proposal to mutualize deposit guarantee funds, he said.
Barnier wants the ECB to oversee rescued lenders starting on Jan. 1, 2013, supervise all so-called systemically important banks in the 17-nation euro area from July 1, 2013 and supervise all euro area banks beginning Jan. 1, 2014, Stefaan De Rynck, a spokesman for Barnier, said yesterday.
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