EBA欧洲银行-CEBS-2007-75-28Range-of-practices2920final_5页_143kb

Summary of RANGE OF PRACTICES on Supervisory Colleges and Home-Host Cooperation

I. Definition of College of Supervisors

A College of Supervisors is a permanent yet flexible structure for cooperation and coordination among supervisory authorities responsible for overseeing different components of cross-border banking groups. It serves as a platform for joint supervision and enhances the effectiveness of both consolidated and solo supervision.

II. Objectives of the College

The primary objectives of a College of Supervisors include:

• Facilitating information exchange among supervisors to enable more efficient and effective supervision and timely regulatory actions.
• Developing a common understanding of the group's risk profile, which is essential for risk-based supervision at both group and solo levels.
• Coordinating supervisory reviews and risk assessments to avoid duplication of work and reduce regulatory burden.
• Coordinating decisions among individual authorities and striving for consensus, especially in cases of divergent views on EU legislation and CEBS guidelines.

III. Organization of Colleges

The organization of a College depends on several factors:

• The structure of the banking group.
• Geographic concentration.
• Systemic relevance of entities.
• Type of operations and services.
• Original agreements among supervisors.

Types of Colleges:

• General College: Multilateral meetings for discussing group-wide issues, overall supervisory policy, and planning. These are typically held on a case-by-case basis (e.g., yearly).
• Core College: Restricted meetings involving a limited number of supervisors focused on the main activities of the group.

Key Participants:

• Supervisors are selected based on art. 129 (2) of the CRD and the importance of subsidiaries or branches in the group and their relevance to host markets.
• Systemically relevant branches may be invited.
• Non-European supervisors may also be included, depending on confidentiality and cooperation needs.

Responsibilities:

• The consolidating supervisor is responsible for communicating with the banking group and sharing findings.
• Host supervisors communicate solo-level measures to subsidiaries.
• Written arrangements must cover the functioning, organization, and cooperation procedures of the College, including in emergency situations.

IV. Information Exchange and Ongoing Cooperation

• Extensive information exchange is essential for effective cross-border supervision.
• Communication should be two-way, balanced, and proportionate.
• The consolidating supervisor acts as a central hub for information gathering and dissemination.
• Information exchange can occur through various means such as meetings, emails, websites, and IT solutions.
• Secure channels (e.g., encrypted emails, password-protected websites) are required for sensitive data.

V. Delegation of Tasks and Joint Inspections

• Delegation tools are used to enhance cooperation between consolidating and host supervisors.
• Tasks should be formally delegated between the two types of supervisors.
• Joint inspections and planning are part of the regular agenda of the College.

VI. Cooperation in Joint Model Validation

• The College is the forum for discussing model validation approaches.
• A timetable for pre-approval and approval processes, along with a division of tasks, should be agreed upon.
• The consolidating supervisor initiates the process, and host supervisors are fully involved, especially in the pre-application phase.
• A minimum application package must be well-defined and widely consulted with host supervisors.
• The consolidating supervisor integrates host requirements into the application package.
• Pre-approval involves on-site visits, followed by off-site work and joint decisions.
• The College reports findings to the banking group.
• Host supervisors not initially involved should be invited to multilateral meetings and provided with written documentation before direct involvement.

VII. Cooperation in Supervisory Review and Evaluation Process (SREP)

• The College framework enhances the consistency of supervisory assessments across the entire group.
• The consolidating supervisor leads the initiation and coordination of the SREP, including risk identification, task planning, and progress monitoring.
• ICAAP reviews and requirements are discussed within the College.
• Information requests should be synchronized across central and local levels.
• The SREP includes a risk assessment (usually annual) that forms the basis for consolidated supervisory actions.
• Host supervisors conduct local-level SREP reviews, which feed into the group-level assessment.
• Local supervisory activities are considered in the consolidated supervisory plan.