ECB President Mario Draghi says need single supervisor to see off risks

FRANKFURT: The creation of a capital markets union would bring with it greater risk of financial contagion that regulators would need special powers to combat, the president of the European Central Bank said on Thursday.

"Ultimately, a single regulatory supervisor and macroprudential toolkit for capital markets should be established," Mario Draghi said in the text of a speech to be delivered in Milan.

"This is mostly a long-term consideration; yet we must remember that legal tools will be necessary to bring out the full benefits of deeper integration."

The European Central Bank is already responsible for supervising big banks. Some lawmakers believe that a regulator with a wider remit over insurers and markets, for instance, is needed.