Central banks from the USA got into a fight with colleagues from the EU behind closed doors. You don’t want the banks to go green, that’s what the European Central Bank is doing

The American central banks got into trouble with the European ones. It’s an established state. And he didn’t care at all.

In particular, the European Central Bank investors want individual private banks to go greener. They should be obliged to report in detail to supervisory authorities about strategies for fulfilling green bonds. But the American central bank is rather reluctant to do so, as Bloomberg found out.

The European Central Bank is pushing for the Basel Committee on Banking Supervision to be able to ask individual commercial banks to fulfill the ambition of green bonds. According to Amerian, however, the Basel Committee would limit its powers.

members of the Basel Committee, its secretariat is located in the center of the Bank for International Payments, a sort of central bank of central banks, in Basel, Switzerland, there are 28 countries and jurisdictions, including the European Union and the USA, or central banks and regulatory bodies of these countries and jurisdictions. The committee represents a platform for negotiating an international standard for banking regulation.

According to Bloomberg’s insider information, a behind-closed-doors meeting is being held first between central banks from the US and their counterparts from the EU. The EU has stricter rules for filling climate tariffs.

Central banks don’t have to control the climate, Jerome Powell, the American central banker of the Fed, told the news not long ago.

There is a dispute about his age. The transatlantic network of central banks is another pillar in the mosaic explained for the economic performance between the US and the EU according to the opening and in the last few years to go faster than before.

Luk Kovanda, Ph.D.

Chief Economist, Trinity Bank