The top job of the Single Supervisory Mechanism has been given to Italy’s Andrea Enria, the current head of the European Banking Authority, who will take over from Daniele Nouy.
The European Central Bank confirmed on November 7 that Enria was their top choice after also considering the Deputy Governor of the Bank of Ireland, Sharon Donnery
The Single Supervisory Mechanism oversees 118 Eurozone systemic banks and has the mandate to ensure that they are adequately capitalised and do not otherwise endanger the Eurozone’s capital markets.
The agency was set up in the aftermath of the Eurozone crisis when it became clear that lenders could threaten the integrity of the whole of the Eurozone.
Donnery has been a champion for the reduction of Non-Performing Loans (NPLs), which has gained her support from several northern European countries. NPLs are a systemic challenge mainly faced in the south of Europe, particularly Greece and Italy.
The ECB’s policy, in this respect, can be critical to the economy of the EU’s southern members.
Though hailing from Italy, Enria is not linked to the current Eurosceptic government in Rome.
With the European Central Bank’s chief economist position set to open once German-born Peter Praet‘s term expires in May 2019, Ireland plans to nominate Philip Lane, the Governor of the Central Bank of Ireland, to fill the job.