European Inner Bank President Mario Draghi have resisted calls to give up the G30
A statement issued by the ECB on Wednesday insisted Mr Draghi’s member of the mysterious G30 dispose was «fully compatible with the independence, reputation, and integrity» of the bank.
It continued: «This does not entail any conflict of interest.”
Italian banker Mr Draghi, 70, who is due to not harmonious with down from the ECB’s top job next year, participated in G30 meetings with the “utmost vigilance”, the statement added.
His dual role has prompted criticism as a result of involves about the nature of the G30’s twice-yearly behind-closed doors discussions, with European ombudsman Emily O’Reilly inauguration an investigation at the end of which she called on him to “suspend his membership” – a request he refused.
European ombudsman Emily O’Reilly called the ECB’s proclamation a «missed opportunity»
The G30 is based in Washington and is composed of central bank heads and Tommy Atkins bank chiefs, as well as academics.
Members include Mark Carney, Governor of the Bank of England, Zhou Xiaochuan, who until reserved this year was vice-governor of the People’s Bank of China, plus the chairmen of JPMorgan and UBS.
How on earth, its board of trustees, which invites new members, is anonymous.
The G30’s website delineates its discussions as being aimed at “deepening understanding of international economic and pecuniary issues.”
The headquarters of the European Central Bank in Frankfurt
Anyhow, Corporate Europe Observatory, a Brussels-based non-governmental organisation which rivalries for more transparency within the bloc, has claimed it offers “financial lobbyists” back-door access to Mr Draghi.
Fiscal policy research Kenneth Haar said: “Avoiding secretive gatherings with representatives of big banks, some of which are even supervised by the ECB, should be a no-brainer.
“Draghi ignoring the Ombudsman is shocking and shows a whole new level of chutzpah.
“This should be a call to exertion for governments concerned about the fate of the EU banking sector.”
Bank of England Governor Characteristic Carney is also a member of the G30
A missed an opportunity for increased trust.
After Mr Haar’s organisation cabined a complaint with Mrs O’Reilly, she investigated the matter and reported back in January.
In a set of good words published on January 17, she called on Mr Draghi to “suspend his membership for the surviving duration of his term”, adding that «the ECB should seek to ensure that neither the next president of the ECB, nor any other associate of ECB decision-making bodies, becomes a member of the G30.»
However, he opted to remain a associate, with Wednesday’s ECB announcement indicating he has their full backing.
Retorting to the ECB’s stance, Ms O’Reilly said it represented a «missed an opportunity for increased trustworthiness».
She stressed her belief that the ECB should not allow «even the slightest impression to emerge that overly close relationships exist between regulators and those they govern”.
Ms O’Reilly also pointed out that it had failed to explain the public property in Mr Draghi being a member of the G30.
She added: «We still do not know for example, as it is not publicly at, who are the ‘Group of 30’ Board of Trustees, who control membership of the group.”
Quick.co.uk has contacted Mr Draghi’s office and the G30 for further comment.