EBA欧洲银行-Template_Jan09_15页_260kb

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

Core Content

This document outlines the Multilateral Cooperation and Coordination Agreement for the supervision of the XY Group, a cross-border banking group with subsidiaries and branches in multiple countries, including non-EEA jurisdictions. The agreement is designed to ensure effective, coordinated, and efficient supervision both in normal operations and in crisis situations, in accordance with the Capital Requirements Directive (CRD) and other relevant European legislation.

Main Objectives and Principles

• Facilitate information exchange among supervisors to enable more efficient consolidated and solo supervision, avoiding duplication of tasks.
• Develop a common understanding of the XY Group's risk profile to support risk-based supervision.
• Coordinate supervisory reviews and risk assessments, establish supervisory plans, and arrange joint on-site inspections.
• Strive for consensus on major decisions to ensure consistency in supervisory actions.

Key Principles:

• The agreement is consistent with EU and national laws, as well as Basel Committee and CEBS guidelines.
• Cooperation is primarily conducted through the College of supervisors, with bilateral coordination as a supplementary form.
• The principle of proportionality is applied where appropriate.
• The College of supervisors serves as the central coordination mechanism, with the Home Authority (Authority A) leading the process.

Description of XY Group and Competent Authorities

3.1 Description and Structure of XY Banking Group

• XY Group is a parent credit institution or parent financial holding company in Country A, with subsidiaries and branches in other countries (B, C, etc.) and non-EEA jurisdictions.
• The agreement may include an organogram of the group and a description of its legal structure, business lines, and control functions.

3.2 Identification of Competent Authorities

• Home Authority: Authority A, responsible for consolidated supervision of the XY Group.
• Host Authorities:
  • Authority B: Supervises local European subsidiaries on a solo or sub-consolidated basis.
  • Authority C: Supervises significant European branches.
  • Authority D: Non-EEA supervisory authorities, invited by the Home Authority.
• Contact persons are nominated by each authority to represent them in the agreement.

Confidentiality

• All confidential information shared between authorities is used solely for lawful supervisory purposes.
• Information exchange must comply with national bank secrecy laws and existing bilateral/multilateral MoUs.
• Secure channels are used for highly sensitive information.
• Professional secrecy obligations are extended to all individuals who have access to such information.

Responsibilities of Competent Authorities

• Authority A (Home Authority) leads the coordination of all supervisory activities.
• All authorities must support each other in fulfilling their supervisory duties.
• Task sharing and delegation are conducted based on agreed-upon terms, with a clear division of responsibilities.
• In case of divergent views, the College aims to reach agreement; if not, the matter may be referred to the CEBS Mediation Mechanism.

Cooperation in Ongoing Supervision

6.1 The College of Supervisors

• The College is a permanent, flexible structure for cooperation.
• It 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 on major activities.
• Bilateral relationships are also used for continuous dialogue.

6.2 Information Exchange

• Information is exchanged actively and in a balanced two-way process.
• Authority A acts as the central hub for information gathering and dissemination.
• Secure channels are used for sensitive data.

6.3 Sharing and Delegation of Tasks

• Tasks can be shared or delegated among authorities.
• The Home Authority coordinates and ensures transparency in task delegation and results.

6.4 On-Site Examinations

• Joint on-site inspections are conducted to avoid duplication and ensure a group-wide supervisory picture.
• Authority A coordinates the inspection programs.
• Host authorities inform Authority A of planned national inspections, and vice versa.

6.5 Communication with the XY Group

• Active dialogue is established between authorities and the XY Group.
• Authority A is responsible for group-level communication.
• Other authorities communicate with entities under their supervision.
• The XY Group may be invited to participate in College meetings.

6.6 Internal Model Validation Process

• The Home Authority coordinates the validation of internal models for credit, market, and operational risks.
• A timetable, division of tasks, and supervisory criteria are agreed upon.
• Annex I provides a detailed illustration of the validation process, including model testing, approval procedures, and communication protocols.

6.7 Supervisory Review and Evaluation Process (SREP)

• The Home Authority coordinates the SREP at both consolidated and solo levels.
• Cooperation is ensured in the application of CRD articles (123, 124, 136(2)).
• Annex II outlines the cooperation process and respective responsibilities.

Cooperation in Crisis Situations

7.1 General Aspects

• Competent authorities assess crisis situations affecting their supervised entities.
• Close cooperation is essential to facilitate timely decision-making and crisis resolution.
• Authority A coordinates crisis management, ensuring consistency in decisions and consideration of relevant supervisory views.

7.2 Information Sharing

• During crises, crisis assessments and relevant information are shared among authorities.
• Timeliness and proportionality are balanced in information exchange.

7.3 Preparatory Arrangements

• During normal times, authorities prepare for emergencies by:
  • Ensuring timely information availability.
  • Developing internal contingency plans.
  • Establishing cross-border information infrastructure.
  • Conducting simulation exercises.
  • Identifying emergency contact persons.

7.4 Communication Between Authorities

• In emergencies, Authority A alerts Authority B if a crisis affects a subsidiary.
• Authority A alerts other Host Authorities if a crisis impacts a subsidiary in a Member State.
• Authority A alerts supervisory authorities in other countries if the crisis involves branch structures.
• Authorities inform other relevant authorities (e.g., central banks, finance ministries) if the crisis affects financial stability.

7.5 Communication to the Public

• Authorities aim to coordinate external communication and establish internal procedures for public disclosure of crisis-related information.

Final Provisions

• The agreement remains in effect until one party notifies the others of its intention to discontinue, at least x months in advance.
• Annexes are to be revised and updated as needed to reflect changes in the group's structure or risks.
• The agreement is drafted in English (or a language agreed upon) and translated into the languages of the involved authorities.
• It is recommended to publish the agreement on the respective authorities' and CEBS' websites.