General Information & Client Service
  • Americas: +1.212.553.1653
  • Asia: +852.3551.3077
  • China: +86.10.6319.6580
  • EMEA: +44.20.7772.5454
  • Japan: +81.3.5408.4100
Media Relations
  • New York: +1.212.553.0376
  • London: +44.20.7772.5456
  • Hong Kong: +852.3758.1350
  • Tokyo: +813.5408.4110
  • Sydney: +61.2.9270.8141
  • Mexico City: +001.888.779.5833
  • Buenos Aires: +0800.666.3506
  • São Paulo: +0800.891.2518
September 21, 2017

The EC Vice President Valdis Dombrovskis gave a Keynote Speech at the ESRB Second Annual Conference in Frankfurt. He focused on the issue of nonperforming loans (NPLs) and the micro- and macro-prudential aspects of the proposal for a review of the European System of Financial Supervision.

Mr. Dombrovskis highlighted that the current climate for international regulatory cooperation is unpredictable. “Only with a common approach to financial regulation can we ensure a level playing field for our financial institutions and minimize the risks of regulatory arbitrage.” He then focused on the high levels of NPLs in certain national banking systems such as Greece, Cyprus, Italy, and Portugal, with certain other member states also being affected. He highlighted the strategic importance of the ongoing public consultation on fostering secondary markets for NPLs and on a possible legislation on secured creditors. “We are working together with the ECB, EBA, and ESRB to develop, by the end of the year, a European blueprint for national Asset Management Companies,” he added.


In the coming weeks, EC will set out some ideas on the way forward for Banking Union, added Mr. Dombrovskis. He then moved on to discuss the EC proposal for financial supervision for the Capital Markets Union. In this proposal, EC has put forward targeted amendments to improve the ability of ESAs to monitor cross-border risk, ensure supervisory convergence, and adapt to new developments in the financial sector. The proposals fall under four categories:


The supervisory convergence tools of ESAs are being upgraded and new responsibilities are being given to the EU-wide supervisor for securities and capital markets, ESMA. The proposal would expand EU-level supervision in areas covering certain new prospectuses, EU-labeled cross-border investment funds, and services of systemic importance such as critical benchmarks and data reporting service providers.


The governance and funding of all three ESAs are being improved. The proposal would create new Executive Boards with permanent members for quicker and more EU-oriented decision making. It would make ESAs financially independent of national supervisors by introducing proportional contributions from the financial industry.


EC is proposing changes to improve the coordination of supervisory authorities and minimize the barriers to cross-border financial services. This would be achieved by having ESAs set EU-wide priorities for supervision and perform rigorous and independent reviews of the national supervisors. C is also reviewing supervisory relations with third countries, to ensure proper management of all financial-sector risks.


EC wants ESAs to promote sustainable and green finance and Fintech. “That is why we want to require them to take these areas into account in their work.”


In conclusion, he reinforced that this package of proposals seeks to make improvements, where necessary, without upsetting the balance of what proved to be functioning. It is ambitious in seeking to enhance the ability of European System of Financial Supervision (ESFS) and ESAs to play a key role going forward.


Related Link: Speech

Keywords: Europe, EU, Banking, Securities, Insurance, NPLs, ESAs, Supervisory Convergence, Capital Markets Union, EC

Related Articles

EBA Single Rulebook Q&A: Fourth Update for March 2019

EBA published answers to five questions under the Single Rulebook question and answer (Q&A) updates for this week.

March 22, 2019 WebPage Regulatory News

ECB Updates Validation Checks and List of Identifiers Under AnaCredit

ECB updated the AnaCredit validation checks (Version 1.4) and the list of national identifiers (version 2.4) for AnaCredit reporting.

March 21, 2019 WebPage Regulatory News

BCBS Publishes Results of the Basel III Monitoring Exercise

BCBS published results of the Basel III monitoring exercise based on data as of June 30, 2018.

March 20, 2019 WebPage Regulatory News

EBA, FCA, and PRA Agree on MoU Template for Supervisory Cooperation

EBA, FCA, and PRA announced that they have agreed on a template for the Memorandum of Understanding (MoU) that sets out the expectations for supervisory cooperation and information-sharing arrangements between UK and EU/European Economic Area national authorities.

March 20, 2019 WebPage Regulatory News

HKMA Publishes CoP on Loss-Absorbing Capacity Requirements of Banks

HKMA issued, in relation to the Financial Institutions Resolution (Loss-Absorbing Capacity Requirements—Banking Sector) Rules (LAC Rules) a chapter of a code of practice (LAC CoP) under section 196 of the Financial Institutions Resolution Ordinance (FIRO).

March 20, 2019 WebPage Regulatory News

EBA Publishes Reports Monitoring the Implementation of Basel III in EU

EBA published two reports measuring the impact of implementing the final Basel III reforms and monitoring the implementation of liquidity measures in EU.

March 20, 2019 WebPage Regulatory News

BCBS Publishes Results of Survey on Proportionality in Bank Regulation

BCBS published a report presenting the results of a survey conducted on proportionality practices in bank regulation and supervision.

March 19, 2019 WebPage Regulatory News

US Agencies Adopt Interim Rule to Facilitate Transfers of Legacy Swaps

US Agencies (FCA, FDIC, FED, FHFA, and OCC) are adopting and inviting comments on an interim final rule.

March 19, 2019 WebPage Regulatory News

EBA Updates List of Other Systemically Important Institutions in EU

EBA updated the 2018 list of other systemically important institutions (O-SIIs) in EU. The list also reflects the additional capital buffers that the relevant authorities have set for the identified O-SIIs.

March 19, 2019 WebPage Regulatory News

HKMA Expects Banks to Manage Risks Related to Crypto-Asset Exposures

HKMA issued a statement announcing that it expects authorized institutions to take note of the BCBS statement on crypto-assets and its prudential expectations.

March 18, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 2780