“After so many changes in banking regulation, it’s hard to know who does what,” said Raoul Ruparel, head of economic research at Open Europe, a research group based in London.”
“The banking authority’s governance invites confusion. The agency is run by a board made up of the heads of the national banking supervisors from the 28 member states of the European Union. They vote by qualified majority — meaning by weights assigned to countries, though in 2011 the European Union introduced a new voting scheme, a double simple majority, to reduce the likelihood that the British would be outnumbered by the 18-country eurozone bloc. So issues like defining leverage or risk-weighted assets are voted on by a qualified majority of the 28 members of the board and also require a simple majority of countries in the eurozone and those out of it.
So the overall system is qualified majority/double simple majority. And the chairman does not get to vote.
The new voting scheme is “a major improvement,” from what it used to be, said Andrea Enria, the authority’s chairman. “But it still is quite complex.”
Policy watchers say this convoluted structure is the result of Britain’s difficult relationship with Europe: It wants to be part of the single market, but not subject to the authority of the European Central Bank, which will regulate the banking union.”