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03 December 2004

Speech: CEBS and the supervisory role in EU banking markets

In his speech held in Palermo on ‘CEBS and Basel II in an expanded EU’, Helmut Bauer from the Bureau Member of CEBS, dealt with CEBS possible role of future European supervision in the banking market focusing particularly on cross-border supervision. He outlined that there there is considerable momentum to develop a new quality in the co-operation of home and host supervisors.

Cross-border banking groups would much prefer to deal with a single supervisory authority as their point of contact for the group as a whole and would wish that point of contact to coordinate all the regulatory and supervisory services needed for the group to operate across Europe.

“We have seen a lot of discussions recently on, in some respects, competing concepts” he said. “The Capital Requirements Directive stops short of this concept and proposes in Art. 129 a sort of sophistication of the traditional concept of consolidated supervisor” and states that in the medium- and long term perspective the complex challenges require some serious efforts to improve substantially the quality and intensity of co-operation between home and host supervisors. “This is less an issue of institutional set-up and reallocation of supervisory responsibilities between home and host supervisors. Rather it is an issue of supervisory practices and co-operation in day-to-day supervision” he said.

Full speech

© Graham Bishop

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