Featured Product

    Danièle Nouy of ECB on Benefits of Moving Toward A Single Jurisdiction

    September 18, 2018

    Danièle Nouy of ECB spoke at the ACPR Conference and emphasized that moving toward a single jurisdiction will help address the challenges being faced by the European banks and banking systems. She reiterated that the Banking Union and the Single Supervisory Mechanism (SSM) must progress further to become a single jurisdiction and outlined how a single jurisdiction can help manage the existing challenges. Finally, she listed actions that could facilitate improvements in the way things are being done.

    Ms. Nouy discussed that the Banking Union requires harmonization of options and national discretions; cross-border cooperation, including cross-border waivers for solvency, liquidity, and large exposures; and solidarity, as embodied by a European deposit insurance scheme, or EDIS. With respect to the current low profitability of banks, she suggested that a larger market, in which banks are able to consolidate across borders, would help to get the banking sector back in shape. It would also put European banks in a better position to serve large European companies and to compete successfully with other global financial actors. She added that this European consolidation will not necessarily result in certain banks becoming too big to fail because they might be too big to fail for a single country, but not for the entire euro area.

    Another challenge that Banking Union can help meet is Brexit. "Banking Union makes it much easier to welcome safe and efficient banks that want to relocate—not only banks from the United Kingdom, but also from other countries, as in the case of Nordea, which is moving from Sweden to Finland. And this is not just true for single banks; it is also true for entire banking systems, such as that of Bulgaria, that might join the SSM through close cooperation." She added that the SSM needs to be an agile supervisory authority that cooperates perfectly with the other European institutions and is respected by its global peers. To this end, the following are the things that can be done better:

    • Improvements in decision makingreal delegation of powers, embedded in the SSM framework, would be a huge help
    • Further simplify processesnot least to avoid duplication of work between the national supervisors and ECB
    • Awareness that, in the euro area, bank supervisors now have a European mandate, regardless of whether they work in Paris, Frankfurt, Brussels, or Madrid
    • Fostering the exchange of information and experiences between the national supervisors and ECB

     

    Related Link: Speech

    Keywords: Europe, EU, Banking, SSM, Single EU Jurisdiction, EDIS, Banking Union, ECB

    Related Articles
    News

    PRA Revises Branch Return and Updates Guidance for Regulatory Reports

    PRA published the policy statement PS17/19, which contains the final policy related to changes in the format and content of the Branch Return Form and reporting guidance.

    September 12, 2019 WebPage Regulatory News
    News

    FINMA Outlines Treatment of Stablecoins in Supplement to Guide on ICO

    FINMA published a supplement to its initial coin offerings (ICOs) guidelines, outlining the treatment for stablecoins under the Swiss supervisory law.

    September 11, 2019 WebPage Regulatory News
    News

    Ursula von der Leyen Presents Structure of Next European Commission

    President-elect Ursula von der Leyen has presented her team and the new structure of the next European Commission.

    September 10, 2019 WebPage Regulatory News
    News

    FED Proposes to Revise and Extend Reporting Form on Systemic Risk

    FED proposed to extend for three years, with revision, the Banking Organization Systemic Risk Report (FR Y-15; OMB No. 7100-0352).

    September 10, 2019 WebPage Regulatory News
    News

    EBA Issues Revised List of Validation Rules for Reporting

    EBA published the revised list of validation rules (version 2.9) in its implementing technical standards on supervisory reporting.

    September 10, 2019 WebPage Regulatory News
    News

    Bundesbank Publishes Supplementary Validation Rules for Reporting

    Bundesbank published the updated document containing supplementary validation rules in the context of the implementation of the reporting system at national level.

    September 10, 2019 WebPage Regulatory News
    News

    APRA Licenses Xinja Bank as Authorized Deposit-Taking Institution

    APRA granted Xinja Bank Limited a license to operate as an authorized deposit-taking institution without restrictions, under the Banking Act 1959.

    September 09, 2019 WebPage Regulatory News
    News

    FDIC Proposes Revisions to Regulations on Interest Rate Restrictions

    FDIC proposed revisions to its regulations covering interest rate restrictions that apply to less than well-capitalized insured depository institutions.

    September 09, 2019 WebPage Regulatory News
    News

    EBA Intends to Clarify End-Treatment of Grandfathered Instruments

    EBA announced its intention to clarify the prudential treatment applicable to own funds instruments at the end of the grandfathering period, which expires on December 31, 2021.

    September 09, 2019 WebPage Regulatory News
    News

    IMF Releases Reports on 2019 Article IV Consultation with Saudi Arabia

    IMF published its staff report and selected issues report in context of the 2019 Article IV consultation with Saudi Arabia.

    September 09, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 3799