ECB proposes Lautenschlaeger for vice chair of banking watchdog

FRANKFURT (Reuters) - The European Central Bank proposed Sabine Lautenschlaeger, who will join the ECB executive board next Monday, as vice chair of the new European banking watchdog.

Lautenschlaeger was formerly vice president at Germany's Bundesbank and in charge of banking supervision there, which means she is well qualified for the No. 2 position at the Single Supervisory Mechanism.

"Sabine Lautenschlaeger is a highly regarded expert in the banking supervision world and I look forward to working with her," ECB President Mario Draghi said in a statement on Wednesday.

The European Parliament will decide on the approval of the candidate proposed by the ECB.

(Reporting by Harro Ten Wolde and Eva Taylor; Editing by John Stonestreet)