Clarification on ECB Competence to Exercise Supervisory Powers
ECB published a letter to banks, with additional clarifications regarding its competence to exercise supervisory powers granted under the national law. The Supervisory Board of ECB, in cooperation with the EC, has further clarified the delineation of competences between the ECB and the national competent authorities on the exercise of certain supervisory powers granted under national law.
Annex 2 to this letter includes a brief description of these supervisory powers and an indicative list of relevant national law provisions. The Supervisory Board concluded that the ECB is—in addition to the powers mentioned in the previous communication—directly competent to exercise the following supervisory powers granted under national law:
Approval of acquisitions by significant institutions of holdings in a non-credit institution or a credit institution outside the EU
Approval of mergers/de-mergers involving significant institutions
Approval of asset transfers/divestments involving significant institutions
Approval of a significant institution’s statutes
Approval of the appointment of key function holders in significant institutions
Approval/objection to the appointment of external auditors (to the extent such powers are linked to ensuring compliance with prudential requirements) of significant institutions
Approval of specific banking activities relating to licensing
Approval of strategic decisions of significant institutions
Related Link: Letter to Banks (PDF)
Keywords: Europe, ECB, Banking, Banking Supervision
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