Speech Trichet: Towards the review of the Lamfalussy approach

10 May 2007

Speaking at the first CEBS Conference in London, ECB President Jean-Claude Trichet, analysed some developments in the EU banking sector with a particular focus on integration and cross-border banking activities. He also presented a review on the main objectives and related challenges for the supervisory framework and assessed the progress achieved with the supervisory responses so far.

Talking on the developments in the EU banking sector the ECB president underlined that the supervisory framework in the EU should be “supportive of a market-led process of cross-border banking as a driver of further banking integration.”

“Efficient supervision at group level should be pursued, through consistent supervisory requirements and approaches and closely coordinated measures to fully exploit synergies.”

Also, the supervisory framework should maintain its effectiveness in safeguarding financial stability in a more integrated banking and financial sector. Mr Trichet underlined the need for enhanced cross-border supervision at the group level. “In particular, intense cooperation and information-sharing is required. Furthermore, supervisory measures should be more closely coordinated to ensure the overall effectiveness of supervisory action.”

Mr Trichet reminded that the pursuit of supervisory convergence in practice is unavoidably a long-term project. Challenges lying ahead include:

to ensure convergence of day-to-day supervisory practices.

to resolve differences of opinion stemming from different attitudes of supervisors.

the need for co-operation between EU and third country banking supervisors, and

the need for enhanced co-operation between supervisors on a cross-sector basis.

Full speech

© Graham Bishop