German Buch is favorite to be new ECB supervisor – sources

By Balazs Koranyi

WASHINGTON, April 17 (Reuters) – Three women are set to become the first to become the new head of supervision at the European Central Bank, with Germany’s Claudia Buch the clear favourite, according to people directly briefed.

The ECB, which oversees just over a hundred of the biggest banks in the euro zone, must choose a new chief supervisor to replace Andrea Enria. His five-year term expires at the end of this year, just as the sharp rise in interest rates is upending the banks’ business model.

Buch, vice-president of the German central bank, fue mencionada por casi todas las fuentes como la clara favorita para el puesto, mientras que la mayoría también también à la española Margarita Delgado fue mencionada por casi todas también dijeron que la irlandesa Sharon Donnery podría podría estar en Career.

The sources, who spoke on condition of anonymity, were unanimous that a woman should be chosen to address the gender imbalance in the institution. Twenty-four of the current 26 members of the ECB’s governing council are men, while the record on the banking supervisory board is only marginally better.

According to the sources, the three women are fully qualified for the position on their own merits, so gender would only be a factor in the decision. None of the women have indicated their intention to apply for the position.

An ECB spokesman declined to comment.

Buch, a former member of the German Council of Economic Experts, is favored because he is backed by Germany, the euro zone’s largest economy, and has extensive management experience at a major institution.

Her work in the area of ​​supervision has been limited, which is perhaps a weak point, but she has just been elected to the supervisory board of the ECB after a reshuffle at the head of the Bundesbank.

Delgado, deputy governor of the Bank of Spain, is considered a very experienced high-level supervisor, but Spain already holds the vice-presidency of the ECB, a problem at a time when the European Union is trying to distribute the posts among its Member States.

Donnery, deputy governor of Ireland’s central bank, is considered a longer shot, the sources say. She was pushed out of the job five years ago when Enria was elected, and some Irish officials are already in key positions in the financial sector.

At least one source said he would also like to see Stefan Ingves, the former governor of the Bank of Sweden, among the candidates.

The sources added that the selection process has not yet started, so all discussions about the candidates are still informal. The announcement of the vacancy could take place in the fall, they said.

The new Chairman of the ECB’s Supervisory Board is chosen by its Governing Council and will be formally appointed by the European Council after approval by the European Parliament.

(Reporting by Balazs Koranyi; Editing by Paul Simao; Editing in Spanish by Darío Fernández)