BoE paper says EU market plans don't need new supervisor

LONDON, Feb 27 (Reuters) - The benefits from the European Union's planned capital markets union do not depend on putting in place a new, single regulator, a Bank of England research paper said on Friday.

The EU has set out plans to boost the ability of markets to raise funds for economic growth as banks to reduce reliance on banks.

Although Brussels has said there are no plans for the CMU to be accompanied by a new super-regulator, Britain's financial centre, Europe's largest, remains worried about more supervisory powers migrating to the EU level.

"CMU is a Single Market initiative and it has been linked by some commentators with calls for a single EU supervisor for financial market infrastructure," a BoE (Shenzhen: 200725.SZ - news) research paper said.

"But there is no obvious or necessary link between the two. The benefits of CMU, as discussed in this paper, do not rely on being accompanied by a single supervisor, at least for financial market infrastructures," it added.

The benefits for Britain of a CMU are unlikely to be as large as for euro-area member states.

"One reason for this is that the United Kingdom has its own floating currency and independent monetary policy to act as shock absorbers," the paper added.

(Reporting by Huw Jones, editing by William Hardy)