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“The review of the CRD is expected to lead to enhancing the role of the consolidating supervisor and to provide the institutional underpinning for the operation of supervisory colleges under the auspices of CEBS”, ECB Executive Board Member González-Páramo said. “Furthermore, supervisory co-operation should also be intensified on a cross-sector basis as the boundaries between financial activities are becoming increasingly blurred and all financial sectors can be affected by market developments.”
González-Páramo also called for enhanced co-operation among central banks, supervisors and regulators. While on the global scale the FSF and the IMF will intensify their co-operation to assess financial stability risks, the same is envisaged for the CEBS and the Banking Supervision Committee of the ESCB in
“On the crisis management side, it is important to ensure that the central banks’ operational framework is sufficiently flexible to deal with extraordinary situations and that supervisors’ cross-border arrangements for dealing with weak banks are sufficiently robust”, he underlined. “This is particularly pressing given the global nature of financial markets and the emergence of large cross-border groups spanning across a large number of jurisdictions and thus being supervised by a multitude of national authorities.”
Pointing on the role of the Central Bank, González-Páramo recalled the ECB position on the possible role of central bank in financial supervision in 2001. “The main position is that there is no optimal arrangement for the organisation of supervision at the national level”, he said. “However, regardless of the model, it is important that there exists a very close and smooth interplay between the central banking and the supervisory function.”