EBA欧洲银行-ELEC-speech_6-March-2009_16页_184kb

ELEC Summary: Challenges for Supervisors in Responding to the Financial Crisis

Core Content

The speech by Kerstin af Jochenick, Chair of the Committee of European Banking Supervisors (CEBS), outlines the challenges and initiatives in financial regulation and supervision across Europe during the financial crisis. It emphasizes the importance of convergence in supervisory practices, legislation, and deposit insurance schemes to enhance financial stability and cooperation among EU banking supervisors.

Main Points and Key Issues

1. Role and Structure of CEBS

• CEBS Overview: Established 5 years prior, CEBS is a private company under UK law with 27 members (supervisors and central banks from each EU country), plus participants from EEA countries, the EU Commission, the ECB, and the BSC.
• Mandate: Advises the EU Commission on regulatory issues and promotes convergence and cooperation among banking supervisors.
• Expert Groups: CEBS has three main expert groups focusing on:
  • Convergence of supervisory practices and cooperation
  • Development of prudential regulation
  • Reporting, transparency, and valuation
• Workload: Over 120 people are engaged in CEBS activities, with more than 100 meetings held in 2008.

2. Importance of Supervisory Convergence

• Need for Consistency: The financial crisis has highlighted the necessity for stronger convergence in prudential standards and supervisory practices.
• Current Efforts: CEBS has been working on harmonizing regulations, especially in areas like liquidity risk management, large exposures regime, and capital definition.
• CEBS Recommendations: Advocated for reducing national discretions in the Capital Requirements Directive (CRD) by 80%.

3. Supervisory Colleges

• Definition: A "college of supervisors" is a mechanism to coordinate the supervision of cross-border banking groups.
• Function: Facilitates information exchange and cooperation between home and host supervisors.
• Implementation: CEBS has been promoting the establishment of such colleges since 2006, with many of the largest cross-border banks now having them in place.
• Limitations: Colleges do not replace national decision-making powers, nor do they have the authority to impose sanctions or resolutions in crisis situations.

4. Tools for Regulatory Convergence

CEBS has introduced three tools to support harmonized regulatory implementation:

• Peer Review Mechanism: 27 supervisory authorities conduct peer reviews to ensure alignment with common EU approaches.
• Supervisory Disclosure Framework: A public platform where supervisory authorities disclose how they implement the CRD and CEBS guidelines.
• Mediation Mechanism: Resolves disputes between supervisors and ensures a level playing field across Member States.

5. Regulatory Priorities for 2009

• Liquidity Risk Management: CEBS has intensified work on this area and issued guidance for improved supervision.
• Transparency and Valuation: Focus on better understanding of risk exposures through improved financial reporting and disclosure.
• Remuneration Schemes: CEBS will issue a consultation paper on sound and prudent remuneration policies, including executive pay and overall remuneration structures.
• Risk Management Principles: Review and propose changes to risk management regulations.
• Capital Buffers and Tier 1 Capital Criteria: CEBS will assess and suggest improvements in these areas based on financial rescue plans.

Conclusion

CEBS is playing a crucial role in promoting a unified and efficient supervisory framework across Europe. The organisation has made significant progress in fostering cooperation and convergence, but there is still work to be done. The establishment of supervisory colleges, along with the use of peer review, disclosure, and mediation mechanisms, are key tools in this effort. The ultimate goal is to build a strong supervisory culture and ensure that the EU is better prepared to handle future financial crises.