Translated from the German
"The ECB should be responsible for the supervision of all financial institutions in the euro area in future", says Andreas Schmitz, president of the Bankers Association. In a proposal published today looking at the supervisory process, the banking association suggests a holding model, whereby a legally independent unit for for banking supervision would be established under the umbrella of the ECB. In future, this would be responsible for all banks in the euro area.
In practical terms, the ECB would continue to rely on national supervisors, meaning there would be little change with the supervisory standards for small and medium-sized banks. However, all market participants would have to follow the same rules, with no differentiating between systemically important institions and non-systemically important institutions.
"The crisis affecting Spanish savings banks has once again demonstrated that one cannot predict which bank or group of banks might pose a threat to financial stability", Schmitz explains. "The same supervisory rules must apply for business, risks and all market participants, and they must also be applied in the same way."
"Those who demand a strong Europe must also be willing to relocate areas of competence to a European level", says Schmitz. "This applies to fiscal policy as well as to supervision. Without this willingness, the idea of a genuine banking union in Europe will remain unfinished business."
Main points of Management Summary
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The ECB will assume sole responsibility for banking supervision.
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The ECB banking supervision will apply to the euro area (EU 17), with the possibility of opt-in at any time for EU 27 members.
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All financial institutions in the euro area will be under ECB supervision, whereby the principle of proportionality must be taken into account.
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The cross-border financial supervision structure for the entire EU (EU 27) - revised 1 January, 2011 - remains structurally unchanged.
Proposal (German only)
© BDB - Bundesverband Deutscher Banken
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