EBA欧洲银行-CEBS-2007-177-rev-4-_template-for-written-agreemen_15页_260kb

Multilateral Cooperation and Coordination Agreement on the Supervision of XY Group Summary

Core Content

This document outlines a Multilateral Cooperation and Coordination Agreement aimed at enhancing the supervision of the XY Banking Group across multiple jurisdictions, both within and outside the European Economic Area (EEA). The agreement establishes a College of supervisors as a central mechanism for cooperation, coordination, and communication between the Home authority (responsible for consolidated supervision) and Host authorities (responsible for local supervision of subsidiaries and branches). It also includes provisions for crisis management, information sharing, and task delegation, all aligned with the Capital Requirements Directive (CRD) and CEBS guidelines.

Main Objectives and Principles

• Facilitate Information Exchange: Promote the exchange of information, views, and assessments among supervisors to enable more efficient and effective supervision.
• Enhance Risk-Based Supervision: Develop a common understanding of the XY Group’s risk profile to support risk-based supervision at both group and entity levels.
• Coordinate Supervisory Activities: Establish coordinated supervisory plans, including the sharing and delegation of tasks, and joint on-site inspections.
• Avoid Duplication: Minimize redundant tasks and requests to entities within the XY Group.
• Proportionality: Apply the principles of proportionality where appropriate, especially in the context of cross-border supervision.
• Confidentiality: Ensure that all shared information is used solely for lawful supervisory purposes and protected under national and EU confidentiality laws.

Key Information and Structure

3.1 Description of XY Group

• XY Group is a parent credit institution/financial holding company based in Country A, with subsidiaries and branches in other countries (B, C, etc.) and non-EEA countries.
• The organizational structure and legal entities of the XY Group are described in the agreement, including the main business lines, control functions, and support functions.
• The consolidating supervisor (Home authority) is responsible for coordinating information on structural and operational changes in the XY Group.

3.2 Identification of Competent Authorities

• Home Authority: Responsible for consolidated supervision of the XY Group.
• Host Authorities: Responsible for sub-consolidated/solo supervision of local subsidiaries and branches.
• Non-EEA Authorities: Can be invited to participate by the Home Authority if they meet confidentiality standards.

4. Confidentiality

• All information shared between authorities must be used only for lawful supervisory purposes.
• Information exchanges should respect national bank secrecy laws and existing bilateral/multilateral MoUs.
• Secure channels are required for the exchange of highly sensitive information.

Responsibilities of Competent Authorities

• Home Authority:

  • Coordinates all supervisory activities.
  • Chairs the College of supervisors.
  • Informs the College of tasks and results.
  • Manages communication with the XY Group.
  • Leads the validation of internal models and the SREP process.

• Host Authorities:

  • Share and delegate tasks with the Home Authority.
  • Conduct on-site inspections and communicate with local entities.
  • Participate in the College of supervisors and coordinate with the Home Authority.

• All Authorities:

  • Support each other in fulfilling supervisory tasks.
  • Take into account the potential impact of their decisions on the stability of the financial system in other Member States.

Cooperation in Ongoing Supervision

6.1 College of Supervisors

• A permanent, flexible structure for cooperation among competent authorities.
• Operates at two levels:
  • General multilateral level: Involves all competent authorities for group-wide issues and planning.
  • Core multilateral level: Involves key authorities for focused cooperation.
• Bilateral relationships serve as a continuous dialogue mechanism.

6.2 Information Exchange

• A balanced two-way process is used for information sharing.
• Authority A acts as the central hub for information gathering and dissemination.
• Information is exchanged to avoid duplication and ensure timely decision-making.

6.3 Sharing and Delegation of Tasks

• Tasks can be shared or delegated based on mutual agreement.
• The Home authority coordinates the division of tasks and ensures transparency in results.
• The process is outcome-oriented, with the delegating authority responsible for the process and the delegating authority assessing the result.

6.4 On-Site Examinations

• Joint on-site examinations are conducted for risk assessment of entities within the XY Group.
• Coordination is the responsibility of the Home authority.
• Principles for joint inspections include:
  • Home authority can participate in inspections led by host authorities.
  • Host authorities may participate in parent company inspections for local interests.
  • Joint inspections are agreed on a case-by-case basis.

6.5 Communication with the XY Group

• A dialogue is established between authorities and the XY Group.
• The College determines the information to be communicated to the entire group.
• Authority A communicates group-level findings and agreed views to the XY Group.
• Other authorities communicate solo/sub-consolidated measures to their respective entities.

6.6 Internal Model Validation Process

• Authorities collaborate to validate internal models for credit, market, and operational risks.
• The Home authority coordinates the validation process, including:
  • Timetable, task division, supervisory criteria, and application package completeness.
• Annex I provides an illustration of the interaction among authorities in the validation process.

6.7 Supervisory Review and Evaluation Process (SREP)

• Authorities cooperate in conducting SREP at both consolidated and solo levels.
• The Home authority coordinates and synchronizes the SREP process across the XY Group.
• Annex II details the cooperation process and respective responsibilities of the authorities.

Cooperation in Crisis Situations

• Crisis Assessment: Competent authorities are responsible for identifying crisis situations affecting the institutions under their supervision.
• Information Sharing: Authorities share crisis assessments and relevant information promptly.
• Preparatory Arrangements:
  • Authorities prepare for emergencies by:
    • Maintaining an analytical set of basic data.
    • Checking the capacity of the XY Group to provide timely information.
    • Developing contingency plans and cross-border communication infrastructure.
    • Conducting simulation exercises.
    • Identifying emergency contact persons.
• Emergency Communication:
  • Authority A alerts Authority B if a crisis occurs at a subsidiary.
  • Authority A alerts Host authorities if a crisis affects the XY Group.
  • Authority A alerts supervisory authorities in other countries if the crisis affects their financial systems.
  • Authorities inform other relevant authorities (e.g., central banks) if necessary.
• Public Communication: Authorities coordinate external communication and establish internal procedures to manage crisis-related messaging.

Final Provisions

• The agreement remains in effect until one of the signatories withdraws in writing [x months] in advance.
• Annexes are subject to revision and updating when necessary due to structural or risk changes.
• The agreement is drafted in English or a language agreed upon by the authorities.
• It is recommended to publish the agreement on the websites of the competent authorities and the CEBS.

Conclusion

This agreement establishes a robust framework for multilateral cooperation among banking supervisory authorities in the supervision of the XY Group. It emphasizes coordination, information sharing, confidentiality, and proportionality, ensuring that the XY Group is supervised effectively both in normal operations and during crises. The College of supervisors serves as the primary mechanism for collaboration, while the Home authority plays a central role in coordination and decision-making.