1 / 8

Conference on Financial Integration and Stability in Europe Madrid, 30 November-1 December 2006

Conference on Financial Integration and Stability in Europe Madrid, 30 November-1 December 2006. Remarks by Henk Brouwer Executive Director, De Nederlandsche Bank. 1 Update conclusions EFC Reports Report on Financial Stability (2000) - Recommendations :.

adonia
Download Presentation

Conference on Financial Integration and Stability in Europe Madrid, 30 November-1 December 2006

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Conference onFinancial Integration and Stability in EuropeMadrid, 30 November-1 December 2006 Remarks by Henk Brouwer Executive Director, De Nederlandsche Bank

  2. 1 Update conclusions EFC ReportsReport on Financial Stability (2000) - Recommendations: • Strengthen cross-sector co-operation at international level • Exchange of information among supervisors and between supervisors and central banks • Strengthen co-operation between supervisors and central banks • Convergence of supervisory practices

  3. 1 Update conclusions EFC ReportsReport on Financial Crisis Management (2001) - Recommendations: • Supervisors ensure that management information systems of financial institutions is adequate • In a crisis, timely exchange of information  remove legal impediments and develop checklists • Agreement on co-ordinating supervisor • Develop MoUs to deal with crisis management issues • Timely and robust procedures competition authorities

  4. 1 Update conclusions EFC ReportsInstitutional developments since 2001: • Lamfalussy approach in securities markets + banking and insurance regulation • Supervisory convergence promoted by Level 3 committees • Multilateral MoUs on crisis management (2003, 2005) • Crisis simulations to test cooperation • Agreement on co-ordinating supervisor

  5. 2 Are current regulatory arrangements in line with developments in financial markets?Market developments: • Growth in size and complexity of financial institutions→ LCFI´s • Internationalisation and centralisation of internal functions→ cross-border issues • Blurring of distinctions between financial sectors  financial conglomerates, cross-sector issues • Rise of non-regulated institutions

  6. 2 Are current regulatory arrangements in line with developments in financial markets?Regulatory arrangements: • Institutional framework EU remains sectorally oriented + country based • Home country control was instrumental in furthering integration, but … • ...its limitations are becoming apparent: • role of subsidiaries and their supervisors • financial stability implications in case of foreign ownership • crisis management

  7. 3 Is the European institutional set-up adequate for preventing and handling financial crisis ? • Crisis prevention: supervisory framework works, although not perfectly: • conceptual issues (home control, cross-sector) • inefficiencies (hence: striving for convergence, but financial industry complaints and demands) • institutional framework and supervision necessary, but not sufficient conditions for financial stability ● Crisis management: EU framework not seriously tested yet

  8. Agenda • Convergence • Coordination mechanisms • Involve central banks • Expand on home country control … • ... but involve host countries • Burden sharing

More Related