Given the existing enforcement mechanisms under EU law, ESBG takes the view that any decisions taken by the new authorities directed at institutions would not be legally binding. They could only be regarded as recommendations.
An important aspect of the supervisory reform is the issue of preserving the institutional balance, especially in the light of past EP discussions about the checks and balances needed for the Lamfalussy framework. In this context there are concerns in relation to the wide-reaching powers of the EC proposed under the legislative package – particularly as regards the envisaged competences for adopting and changing technical standards, for determining emergency situations, and for influencing the work of the new authorities.
With regard to ongoing debates about the lawfulness of some of the powers of the new authorities, especially the envisaged powers to impose binding decisions on individual institutions, it is of the utmost importance that the situations and legal relationships underpinning the new EU supervisory framework remain foreseeable and firmly grounded in an unchallengeable legal base. Given the existing enforcement mechanisms under EU law, ESBG takes the view that any decisions taken by the new authorities directed at institutions could not be legally binding and could only be regarded as recommendations. An important aspect in need of further improvement concerns the participation of the industry in the new supervisory framework.
It is indispensable that experts bringing practical insight and representing the industry’s views participate, in a structured way, in both the macro- and micro-prudential discussions taking place in the framework of the new bodies. Such experts’ representation should properly reflect the banking industry’s pluralistic nature. Furthermore, binding public consultation should be secured for all measures to be adopted by the new authorities (including guidelines and recommendations).
As regards the legislative process, following the publication of the EP’s reports on the draft legislative package for a new supervisory architecture, which contains far-reaching proposals for amendments to the initial proposals, it is expected that intensive negotiations will take place between the EU institutions with a view towards finding a common agreement on the details of the future financial supervisory architecture, as some substantial differences appear to exist between Council and Parliament positions on the EC’s proposals.
Newsletter
© European Savings Banks Group
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article