ECB Contribution to the EC Consultation on Operations of ESAs
ECB published its contribution to the EC’s consultation on the operations of ESAs. ECB welcomed this consultation and offered remarks on supervisory convergence, international aspects of the work of ESAs, powers on access to data, and streamlining reporting requirements and improving reporting framework.
ECB stated that it supports further integration of the supervisory framework at the EU level, both for banking and for the capital markets. In this context, the aim of the review should be to strengthen the EU dimension of supervision. ECB reiterates that a strong Capital Markets Union will, in the long run, require the creation of a single capital markets supervisor. Although the establishment of ESMA was a major step in fostering the convergence of national supervisory practices, the supervision of securities markets still occurs at the national level, fragmenting the application of EU legislation and keeping EU capital markets segmented. In this response, ECB also stated that it supports a review of the governance structure of the ESAs and that the review should cover the voting arrangements, the membership structure of the ESA Boards, and the relationship between the Boards of Supervisors and their respective Management Boards.
ECB welcomed the call to strengthen the role of the central bank of issue, which was put forward in the recent EC proposal (published on June 13) for amending the European Market Infrastructure Regulation (EMIR). ECB also reiterated its call for strengthened macro-prudential supervision for capital markets and extending the macro-prudential toolkit for non-banking activities. With the establishment of the Capital Markets Union, and in the light of new emerging systemic risks in the non-banking sector, the EU legislation available to the relevant national and EU authorities should address such instruments. It is particularly important for European entities and activities, such as insurance and securities markets, to ensure homogenous enforcement across the EU. The discussion of financial stability issues in the non-banking sector warrants the involvement of central banks, given their expertise in assessing systemic risk and requires changes in the competencies and governance of ESMA and EIOPA.
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Keywords: Europe, Insurance, Banking, Securities, ECB, ESA, EC, Response to Consultation, Operations, Supervisory Convergence
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