Irish banker Sharon Donnery was in the running for this job. Enria, who heads the European Banking Authority, will become the second ever head of the ECB’s supervision arm. As head of ECB’s oversight arm, he will help set capital requirements for the euro area’s biggest banks, vet their managers and manage Brexit relocations, as many firms shift some operations from London to the currency bloc.
However, Enria’s nomination must be approved by European Union lawmakers first.
The 57-year old regulator has weighed in on major EU debates ranging from Brexit to bad loans, and even played a central role in coordinating Europe’s position on global banking standards.
As the ECB grapples with money laundering scandals and bad loans on balance sheets, Enria will be tasked with the responsibility of seeing the ECB through these challenging times. As chairman of the ECB Supervisory Board, Enria will play a major role in shaping the direction of lenders, many of which are struggling to adapt to low interest rates just as competition from fintech starts to bite.
Enria headed the EBA since its creation seven years ago. He came from the Italian central bank where he held a range of policy roles, including head of department for issuing prudential rules. Within the ECB, he has worked on financial stability and supervision.
As head of EBA, Enria has attained respect across Europe’s banking sector. He turned EBA’s stress tests into a valuable gauge of financial strength and the international experience he gained through his work with the Basel committee, stated Volker Wieland, professor at Goethe University Frankfurt.
Enria’s nomination is part of ECB’s larger reorganisation plan as senior roles on monetary policy will be shuffled between eurozone governments.