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 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

HKMA Decides to Maintain Countercyclical Capital Buffer at 2.5%

HKMA announced that, in accordance with the Banking (Capital) Rules, the countercyclical capital buffer (CCyB) ratio for Hong Kong remains at 2.5%.

April 16, 2019 WebPage Regulatory News
News

EP Approves Agreement on Package of CRD 5, CRR 2, BRRD 2, and SRMR 2

The European Parliament (EP) approved the final agreement on a package of reforms proposed by EC to strengthen the resilience and resolvability of European banks.

April 16, 2019 WebPage Regulatory News
News

FDIC Consults on Approach to Resolution Planning for IDIs

FDIC approved an Advance Notice of Proposed Rulemaking (ANPR) and is seeking comment on ways to tailor and improve its rule requiring certain insured depository institutions (IDIs) to submit resolution plans.

April 16, 2019 WebPage Regulatory News
News

EP Resolution on Proposal for Sovereign Bond Backed Securities

The European Parliament (EP) published adopted text on the proposal for a regulation of the European Parliament and of the Council on sovereign bond-backed securities (SBBS).

April 16, 2019 WebPage Regulatory News
News

PRA Seeks Input and Issues Specifications for Insurance Stress Tests

PRA announced that it will conduct an insurance stress test for the largest regulated life and general insurers from July to September 2019.

April 15, 2019 WebPage Regulatory News
News

PRA Finalizes Policy on Approach to Managing Climate Change Risks

PRA published the policy statement PS11/19, which contains final supervisory statement (SS3/19) on enhancing banks’ and insurers’ approaches to managing the financial risks from climate change (Appendix).

April 15, 2019 WebPage Regulatory News
News

EBA Single Rulebook Q&A: First Update for April 2019

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

April 12, 2019 WebPage Regulatory News
News

EIOPA Statement on Application of Proportionality in SCR Supervision

EIOPA published a supervisory statement on the application of proportionality principle in the supervision of the Solvency Capital Requirement (SCR) calculated in accordance with the standard formula.

April 11, 2019 WebPage Regulatory News
News

FED Updates Form and Supplemental Instructions for FR Y-9C Reporting

FED updated the form and supplemental instructions for FR Y-9C reporting. FR Y-9C is used to collect data from domestic bank holding companies, savings and loan holding companies, U.S intermediate holding companies, and securities holding companies with total consolidated assets of USD 3 billion or more.

April 11, 2019 WebPage Regulatory News
News

OSFI Finalizes Guidelines on Liquidity Adequacy and NSFR Disclosures

OSFI published the final Liquidity Adequacy Requirements (LAR) guideline and the net stable funding ratio (NSFR) disclosure requirements guideline.

April 11, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 2920