A cumbersome decision-making process in case of disagreements cannot be afforded, Trichet said with regard to the CRD review. The effectiveness of the colleges depends on their ability to facilitate decision-making for the banking group as a whole.
Stronger co-ordination among Member States and EU institutions for crisis prevention and crisis management is needed, ECB President Trichet said.
Colleges of supervisors will improve supervisory co-operation, in particular as regards the effectiveness, efficiency and consistency of the supervisory action, he said. However, it remains to be seen whether such a framework will suffice, or whether further improvements will be needed, he said. The key challenges now lie in its implementation.
A cumbersome decision-making process in case of disagreements cannot be afforded, Trichet said with regard to the review of the CRD. “The effectiveness of the colleges depends on their ability to facilitate decision-making for the banking group as a whole”, he said. “The CRD is expected to introduce some rules on the decision-making process should the authorities disagree on essential decisions concerning supervision of cross-border banking groups. Recent events clearly underscore that swift decision-making is of the essence.”
Also, the co-ordination role of Level 3 committees would be ‘of critical importance to ensure consistency of supervisory actions across colleges’, the ECB Presidents notes. “Finally, communication between the home and host supervisors within the colleges is crucial”, he said.
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