As the internationalisation of banks may be presumed to continue, further steps are needed to ensure effective and efficient cross-border banking supervision in Europe, Nout Wellink, Chairman of the BCBS said. However, the way to a more integrated pan-European supervisory structure is far from clear.
In the near term, banking supervision in Europe should continue to build on the existing institutional structure. For cross-border banking supervision so-called colleges of supervisors should be established for all major cross-border groups, he explained. A second step concerns the decision-making process in colleges of supervisors, he said. “I believe that the role of the lead supervisor or consolidated supervisor should be strengthened in order to avoid stalemates”, Wellink outlined.
The interplay between banking supervisors and central banks is another challenge as problems at individual banks are more likely to have systemic effects, he said and called for effective co-operation between central banks and banking supervisors.
“Indeed, a major step forward can be achieved through the lead supervisor model”, Wellink concluded. “To ensure effective interplay between supervisors and central banks, a co-operative and open mindset is required, as well as adequate and timely information sharing.”
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