EBA欧洲银行-FBE_CP09_10页_137kb

FBE Summary of CEBS CP09 Consultation Paper on Supervisory Cooperation

Core Content

The European Banking Federation (FBE) has provided detailed comments on the CEBS Consultation Paper (CP09) regarding guidelines for supervisory cooperation between consolidating supervisors (home supervisors) and host supervisors. The FBE supports the initiative and believes that the paper offers a constructive proposal for the organization of the home/host relationship, especially in the context of the Capital Requirements Directive (CRD). However, the FBE highlights several areas where further clarification and development are needed to ensure an efficient, coherent, and resource-effective supervisory framework.

Main Views and Key Points

1. Supervisory Convergence and Streamlining

• The FBE emphasizes that the overarching goal of CEBS should be supervisory convergence.
• It supports the idea of a converged and streamlined supervisory framework that facilitates closer coordination.
• The FBE believes that crisis management should take precedence over other issues.

2. Role of Consolidating Supervisor

• The FBE supports the idea of a central role for the consolidating supervisor in determining materiality and significance.
• It recommends that the home supervisor should take the final decision on the treatment of subsidiaries and on model approval.
• The FBE calls for the full utilization of Article 131 of the revised CRD for delegation of supervisory responsibilities.

3. Cross-Border Supervision and Legal Framework

• The FBE stresses the importance of a common European supervisory culture and the need for targeted harmonization.
• It highlights the necessity for the legal framework to evolve to align with current risk management practices.
• The FBE believes that the current legal framework may hinder the growth and innovation of the European banking industry.

4. Information Exchange and Transparency

• The FBE supports the idea of proportionate and risk-focused information exchange.
• It urges CEBS to limit bureaucracy and ensure that information flows are channeled through the consolidating supervisor.
• The FBE recommends the development of an appropriate vehicle for information exchange, such as a qualification certificate.

5. Significance Determination and Flexibility

• The FBE agrees that materiality and systemic significance are key factors in determining the treatment of subsidiaries and branches.
• It suggests that the determination should be based on the bank's own qualitative assessment.
• The FBE recommends periodic review of significance determinations to allow for changes in circumstances.

6. Coordination and Dialogue

• The FBE believes that ongoing dialogue between supervisors and banking groups is essential for transparency and effectiveness.
• It calls for the development of a communication strategy and for regular meetings between supervisors in a college format led by the home supervisor.

7. Global Supervisory Cooperation

• The FBE encourages CEBS to explore mutual recognition of supervisory approaches with non-EU jurisdictions such as Switzerland, the US, Canada, Japan, and Australia.
• It supports the idea of promoting best practices at the European level to influence global supervisory interactions.

Key Suggestions

• Clarify the division of tasks and responsibilities between home and host supervisors.
• Use the provision of Article 131 of the CRD to delegate responsibilities.
• Establish a common understanding of significance and materiality among supervisors.
• Implement a qualification certificate as a tool for streamlined information exchange.
• Promote multilateral coordination rather than bilateral arrangements.
• Encourage periodic review of significance determinations.
• Develop a communication strategy and ensure transparency in the decision-making process.
• Explore mutual recognition of supervisory approaches with other jurisdictions.

Conclusion

The FBE views CP09 as an important first step in establishing a more efficient and cooperative supervisory framework. It urges CEBS to continue developing the framework, ensuring that it is both comprehensive and flexible, and to make full use of the available tools to reduce administrative burdens on banks and promote a unified European supervisory culture.