16 April 2012

Opinion of the ECB on the Statute of the Bank of Greece

The draft provisions prohibit supervised institutions from shareholdings and set a cap on the number of votes that each or related private shareholders can exercise.

The ECB welcomes the proposed amendments that prohibit persons supervised by the Bank of Greece from participating in its share capital, and that cap the voting rights that may be exercised by any private shareholder at general meetings of the Bank of Greece to votes attached to shares that do not exceed the percentage that corresponds to 2 per cent of the Bank of Greece’s share capital. These amendments aim at preventing possible interference in the exercise by the Bank of Greece of its public tasks.

The ECB notes that the proposed amendments enhance the Executive Committee’s role, making it a regular body of the Bank of Greece entrusted with the prudential supervision of entities supervised by the Bank of Greece. Although not explicitly mentioned in the proposed provisions, the ECB understands that the tasks related to the exercise of prudential supervision by the Executive Committee include, inter alia, the exercise of the resolution powers of the Bank of Greece.

The ECB considers that the Executive Committee’s proposed composition and decision-making process allow for the establishment of a collegial decision-making process in the Bank of Greece in areas critical for the stability of financial institutions and markets, such as the resolution of supervised entities. The ECB notes that the work of the Executive Committee will be monitored by three non-executive members of the Governing Council; the ECB understands that the oversight conducted by the Governing Council will in no way impede the Executive Committee’s decision-making powers.

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