CRD II requires the establishment of supervisory colleges as an instrument for stronger coordination and cooperation whereby competent authorities reach agreement on key supervisory tasks. The colleges are expected to play a role in preparation and handling of emergency situations.
The Committee of European Banking Supervisors (CEBS) publishes its guidelines for the operational functioning of colleges.
The revised Capital Requirements Directive (CRD) requires the establishment of supervisory colleges as an instrument for stronger coordination and cooperation whereby competent authorities reach agreement on key supervisory tasks. The colleges are expected to facilitate the handling of ongoing supervision and also to play a role in both the preparation for and handling of emergency situations.
These guidelines are in response to the requirement of the revised CRD according to which CEBS should develop guidelines for the operational functioning of colleges. In addition, the guidelines aim to complement the CRD provisions where additional guidance appears necessary in order to avoid inconsistencies and promote convergence of practices across colleges.
The guidelines, which are structured in the form of short principles followed by an explanatory text, have been designed to be as practical as possible. They aim to provide guidance for the different tasks to be performed by the supervisors involved within a college, starting with the process of setting up the college. Guidance is also provided in relation to the organisation of the exchange of information among college members; as well as in relation to communication with management of the supervised institutions; the voluntary sharing and delegation of tasks and the adoption of joint decisions – on the permission for the usage of internal models and on the adequacy of own funds held by the group and its entities - provided for in the CRD. Supervisors within colleges are also provided with guidance for taking due account of macro-prudential risks and for the planning and coordination of activities, not only in going concern, but also in emergency situations.
CEBS expects its members to fully implement these guidelines by 31 December 2010, at the latest, at the same time as the revised CRD comes into force.
© CEBS - Committee of European Banking Supervisors
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