Centeno has Lagarde's support to run for EBA leader

Mário Centeno is one of the most likely candidates to run for president of the European Banking Authority (EBA), the newspaper Eco reported on Tuesday – adding that the former governor of the Bank of Portugal (and former finance minister) will have the support of Christine Lagarde if he decides to run.

The European Central Bank (ECB) does not formally have a direct influence on the choice, but Lagarde's support, if confirmed, could be a plus in Mário Centeno's favor if he decides to run. Another plus would be the presidency of the Eurogroup, a position Centeno held while serving as Finance Minister. However, when contacted by Eco, Centeno neither confirmed his interest in the position nor commented.

In addition to reporting that Centeno had Lagarde's support, Eco adds that the ECB president even tried, in the summer, to intercede with Luís Montenegro to get the prime minister (and the Ministry of Finance) to reappoint the governor for a second term. Despite this initiative, the government ultimately chose to replace Mário Centeno with Álvaro Santos Pereira.

"Two Popes" at the Bank of Portugal. Centeno is not leaving, and coexistence with Santos Pereira may become "unsustainable"

Last week, an international competition was launched to select a successor to José Manuel Campa, who announced his (premature) departure as EBA president in early September. Potential candidates must submit their CVs and a letter of application by November 7th. A panel will then select 10 candidates for interview, and from these, a shortlist of six will be considered by the Board of Supervisors of the European Banking Authority (EBA).

The EBA is a European Union body that oversees and establishes (harmonized) rules for the European banking sector, including defining the minimum regulatory capital ratios banks must meet. Its main function is to guarantee the stability and transparency of the financial system, ensuring that EU banks comply with the same rules and that customer deposits are protected.

The EBA also conducts so-called stress tests on banks, which simulate unfavorable macroeconomic scenarios and assess how banks' balance sheets would hold up.