EBA欧洲银行-HVB_CP09_4页_174kb

HVB Group Summary: Guidelines for Co-operation between Consolidating Supervisor and Host Supervisors

Core Content

HVB Group, the second largest quoted bank in Germany and the market leader in Austria, is a major player in the European banking sector. With over 60,000 employees, 2,062 branch offices, and more than 9.8 million customers, it operates as the premier bank network in Germany, Austria, and Central and Eastern Europe. The bank focuses on European retail and mid-cap customer business, complemented by customer-oriented market activities.

Main Principles and Views

HVB Group supports the development of a more integrated and practical co-operative framework for cross-border supervision in Europe, which should align with the EU's single market goals and evolving legislation. The group emphasizes the following key points:

• Case-by-case assessment: HVB Group believes that the evaluation of significance and systemic relevance should be done on a case-by-case basis, ensuring flexibility for supervisory authorities.
• Avoiding cherry picking: Differentiating between host supervisors of branches and subsidiaries is essential to maintain a fair and consistent supervisory environment.
• Clarity and transparency: The application of the guidelines must be clear, transparent, and comprehensible to all involved parties.
• Early communication: Establishing early communication and coordination with credit institutions is crucial for effective supervision.
• Mutual recognition of national discretion: HVB Group advocates for mutual recognition of national discretions, particularly those related to the creditor's residence or the surety's location, to reduce complexity and costs in RWA calculations.

Legal Framework

HVB Group acknowledges the role of CEBS in coordinating supervision within the EU, particularly through the Supervisory Review Process, ICAAP, and SREP. The group supports CEBS's case-by-case approach for determining systemic relevance and the associated risks within banking groups. It also endorses the requirement for a joint agreement between host and consolidating supervisors regarding the approval of internal strategies, plans, and processes of a banking group.

However, HVB Group calls for further reflection on the interaction between national discretion and the decision-making competences of the consolidating supervisor. It highlights the need for mutual recognition of national discretions in order to ensure consistency and efficiency across the European banking sector.

Model of Co-operation

CEBS's assumption that the consolidating supervisor needs the host supervisor to oversee the entire banking group and vice versa is logical but not commonly practiced. HVB Group suggests that Memoranda of Understanding (MoUs) between supervisors could help clarify key areas such as the significance of subsidiaries and the evaluation of internal strategies. These MoUs would enable advance coordination and reduce ambiguity in the supervisory process.

Information Exchange

HVB Group supports CEBS's view that information exchange should be proportionate and risk-focused. It emphasizes the importance of restricting the flow of information to the actual needs of supervisory authorities. A risk-based approach ensures that not all authorities receive the same level of information, which is appropriate for both solo and consolidated supervision.

HVB Group also endorses CEBS's comments on Article 132 of the Banking Directive, which outlines the essential and relevant information that should be exchanged between supervisors.

Practical Framework (Model Approval)

According to Article 129(2) of the Banking Directive, all supervisory authorities involved must approve the Internal Ratings-Based (IRB) approach and the Operational Risk Measurement Systems (AMA). CEBS provides guidance on the approval process, including specific steps, formal consultative procedures, time limits, and the role of the consolidating supervisor.

HVB Group welcomes this guidance but suggests further development of principles regarding the distribution of relevant documents and information. It advocates for the consolidating supervisor to play a central role in providing information about the approval process, with local subsidiaries not necessarily needing to share all details with local authorities.

Conclusion

HVB Group is in favor of a harmonized and practical co-operative framework for cross-border banking supervision. It emphasizes the importance of clarity, transparency, and mutual recognition of national discretions to support efficient and effective supervision across the European banking sector.