Principles
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Principles. For the SSM to work, a union body must be vested with ultimate supervisory authority over all EU banks ECB cannot be this body unless all MS join the Euro Ultimate solution = Use 352+114 TFEU to create a body (EBA or a separate entity) that has these powers

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Presentation Transcript
Principles
Principles

  • For the SSM to work, a union body must be vested with ultimate supervisory authority over all EU banks

  • ECB cannot be this body

    • unless all MS join the Euro

  • Ultimate solution = Use 352+114 TFEU to create a body (EBA or a separate entity) that has these powers

  • Immediate solution = reinforce EBA to ensure that :

    • ECB is treated as ordinary supervisor

    • ECB and other NSAs are equally subject to final say by EBA

      • EBA can address binding instructions equally to all NSAs and ECB

    • Adapt decision making in EBA to prevent the ECB mechanism

      • Systematically dominating non-ECB MS

      • Diminishing rights of “opt-ins”

    • Enhance EBA’s powers to enforce compliance with information requests and other decisions are reinforced (reflecting EP position from 2010)


Proposals
Proposals

  • Enhanced powers of EBA

    • Full investigatory powers over institutions & supervisors

    • Issuing Single Supervisory Handbook (Enria)

    • Direct intervention in case of non-compliance

    • Strong rights in stress test operations

    • + EP position on EBA 2009

  • Binding instructions

    • ECB (non-)action can be corrected by binding EBA decision (no independence for supervisory tasks)

    • Just as in the case of National Supervisory Auths. (NSA)

  • Special Panel for ECB competent authorities

    • Possibility of challenging (via EBA) ECB decision affecting an “opt-in”

    • Means that ECB decision (based on power of Gov. Council with no “opt-ins”) can be overruled by EBA decision (proposed by panel including “opt-ins”)

  • Changed EBA voting system for Binding Mediation

    • “3+3” only where a dispute is between ECB and non-ECB

    • Simple majority otherwise

  • Binding rules for EBA to safeguard diversity of the European banking system


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