European Banking Supervision Evolution

Extract

[...] It does not, however, perform this task alone as it is assisted by national authorities for the accomplishment of its missions. In 2011 has been instituted the European Banking Authority (EBA) (regulation no. 1093/2010 of 24 November 2010), following the model like other European authorities, such as the European Securities and Markets Authority or the European Insurance and Occupational Pensions Authority and occupational pensions, which harmonize processes at the European level. [...]

[...] Specific Competence The European Central Bank (ECB) also has the mission to supervise and monitor certain credit institutions in a prudent manner. This mission is more restricted and specific. The BCE does not exercise a supervision prudentielle directe that when certain conditions are met, and this concerns essentially the systemic credit institutions, that is to say the most important ones. For one of the following criteria to be subject to this supervision, the following must be met: - The total value of assets of the establishment is greater than 30 billion euros. [...]

[...] The regulators perform these tests only rarely, as the institutions under their supervision are generally smaller in size. The ECB, on the other hand, simulate crisis scenarios by injecting 'stressful' data into bank accounts for evaluate their ability to withstand major shocks, such as a pandemic or a nuclear catastrophe. Although the general framework of these scenarios is known, the details remain confidential. This allows identifying the weaknesses of an institution, even if it appears to meet solvency ratios in appearance. [...]

[...] The supervisory structure of the European banking system is one of the most advanced and integrated, across all sectors. Three main actors intervene in this supervision:1. The European Central Bank (ECB)2. The European Banking Authority (EBA)3. The national supervisory authorities (NSAs) - The The European Central Bank (ECB) ; - The European Systemic Risk Board (ESRB) ; - TheEuropean Banking Authority (EBA). What is the evolution of European banking supervision? Originally, the supervision of banking activities was ensured by national authorities, each competent for credit institutions having their head office on its territory. [...]

[...] The meets regularly to debate and establish annual and multi-annual work plans. It also takes decisions aimed at remedying the observed dysfunctions in banking institutions. These decisions of the BCE are likely to recourse to the European courts. In parallel, some European officials, called controllers of the European Central Bank, are specifically in charge of the direct supervision of credit institutions. These controllers are often recruited from among the agents of the national control authorities, sometimes to the detriment of the latter. [...]