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Xi Banking Supervisors Xbrl Workshop 20 November, 2009 ViennaPresentation Transcript
Proposals, Conclusions and Dialogues Piotr Madziar – European Commission 20 November 2009, XI European Banking Supervisors XBRL Workshop - Vienna
Topics European Commission proposal for supervisory reform Critics Next steps?
XBRL driving forces Simplification - Reduction of Admin Burden De Larosiere Reform EU Council EP MS G20 Corporate governance and transparency E-Gov, Information Society, EU Competitivenss XBRL Simplification Crisis COM De Larosiere Stoiberg
De Larosiere Reform Financial crisis driven Position of national regulators? Global aspect Commission absolute priority.
European Parliament Resolution on Lamfalussy follow-up: future structure of supervision (September 2008) Calls upon the L3 Committees to design common reporting standards Multi-purpose format such as XBRL Throughout the EU Calls upon the Commission to submit adequate legislative proposals
De Larosiere proposal Commission’s proposal of 23 September 2009 ESRB and ESFS = ECB + ESAs + national regulators+… Banking: colaterals, capital, fund transfer reg,… Insurance: insurance and reinsurance, conglomerates, institutions, Solvency II, anti money laundering,… Securities & Markets: transparency, markets in FI, market abuse, prospectuses, hedge funds, CRA, take-over bids, settlements, financial collateral arrangements, ... Technical standards,… XBRL? Links to international standard setters,… XBRL?
More powers for ESAs Technical standards but criteria in Community legislation Flow of information Supervisory culture and supervisory practices Last resort option in case of disagreement Training programmes Aggregate micro-prudential information from national supervisors Set-up a Central European Database. The information will be available for the relevant authorities in colleges of supervisors and forwarded to the European Systemic Risk Council Technical arrangements with international organisations and administrations of third countries.
Proposed structure for Banking € EBA– EuropeanBankingAuthority European Commission Chairperson ECA - European Court of Auditors Executive Director Mgt Board OLAF – l’Office européen de lutte anti-fraude BankingStakeholderGroup Board of Supervisors
Appeal processes EU Council - QMV Board of Appeal for 3 ESAs EBA QMV Member State Member State NSA NSA NSA EU Court of First Instance EU Court of Justice
Joint Committee of European Supervisory Authorities EIOPA - European Insurance and Occupational Pension Authority EBA - European Banking Authority NSA NSA NSA College of Supervisors NSA NSA NSA – National Supervisory Authority NSA NSA NSA NSA NSA NSA ESFS ESFS - EU System of Financial Supervisors ESMA - European Securities and Markets Authority
Information exchange 3rd Countries & Int’l ECB Information exchange Information exchange ESRB – European Systemic Risk Board ESFS – European System of Financial Supervision ESRB – EU Systemic Risk Board
Practicalities, Agenda Financial assistance 37- 70 M€ in years 2011-2016 40% from the Community budget London, Paris, Frankfurt Status similar to EU Agency 74-90 staff (2016) EU Staff Regulation (independence, impartiality).
Financial Market-driven regulatory data reform Governments All Markets Common Reporting Framework Regulated Financial Markets ?
Great unease Far from clear Far too fast
Critics R e a l a r g u m e n t s Sovereignty Global dimension Stop! Exclusion and Dominance Treasury
Critics R e a l a r g u m e n t s Sovereignty of MS:
Host states allowed to take steps if weaknesses are identified - that can be abused for commercial or protectionist reasons
ESAs empowered to overridenational regulators
Changes give EU more powers. Emergencydeclared by the Commission without involvement of the Council. Unclear emergency procedure.
MS should decide first what will ESAs do and how
Critics R e a l a r g u m e n t s Global cohesion:
Not clear how global cohesion is addressed
Need for allignment with G-20 and Basel.
It would be very bad for EU and its financial centres If we forge ahead disregarding what US, Switzerlandand others are doing
Critics R e a l a r g u m e n t s Fiscal responsibilities of MS:
June’s ECOFIN mandate (shoulnd’t impinge on the fiscal responsibility of the MS) breached
EU financial supervisory structure needs an EU fiscal arrangement
Critics R e a l a r g u m e n t s Exclusion and Dominance
Any compromise would need to assure that host states receive all prudential information about entire group.
Eurozone dominance in ESRB
Bankers dominance in ESRB, disregarding the fact that the choice between security and price is a democratic trade-off decision taken by governments, for the citizens.
QMV to recognize the size and importance of financial services relative to GDP