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Xi Banking Supervisors Xbrl Workshop 20 November, 2009 Vienna

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Xi Banking Supervisors Xbrl Workshop 20 November, 2009 Vienna

  1. 1. Proposals, Conclusions and Dialogues Piotr Madziar – European Commission 20 November 2009, XI European Banking Supervisors XBRL Workshop - Vienna
  2. 2. Topics • European Commission proposal for supervisory reform • Critics • Next steps?
  3. 3. XBRL driving forces XBRLSimplification Crisis Stoiberg De Larosiere G20 EU Council EP COM MS
  4. 4. De Larosiere Reform • Financial crisis driven • Position of national regulators? • Global aspect • Commission absolute priority.
  5. 5. 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
  6. 6. 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?
  7. 7. 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.
  8. 8. Proposed structure for Banking EBA – European Banking AuthorityChairperson Mgt Board Executive Director ECA - European Court of Auditors OLAF – l’Office européen de lutte anti-fraude European Commission € Banking Stakeholder Group Board of Supervisors
  9. 9. Appeal processes EU Court of First Instance Member State Member State NSA NSA NSA EU Court of Justice Board of Appeal for 3 ESAs EU Council - QMV EBA QMV
  10. 10. ESFS ESFS - EU System of Financial Supervisors ESMA - European Securities and Markets Authority EIOPA - European Insurance and Occupational Pension Authority EBA - European Banking Authority Joint Committee of European Supervisory Authorities College of Supervisors NSA NSA NSA – National Supervisory Authority NSA NSA NSA NSA NSA NSA NSA NSA NSA
  11. 11. ESRB – EU Systemic Risk Board ESRB – European Systemic Risk Board ECB ESFS – European System of Financial Supervision 3rd Countries & Int’l
  12. 12. 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).
  13. 13. Financial Market-driven regulatory data reform Common Reporting Framework Regulated Financial Markets Governments All Markets?
  14. 14. Critics
  15. 15. Critics Stop! R e a l a r g u m e n t s Sovereignty Treasury Global dimension Exclusion and Dominance
  16. 16. Sovereignty of MS: Critics R e a l a r g u m e n t s •Host states allowed to take steps if weaknesses are identified - that can be abused for commercial or protectionist reasons •ESAs empowered to override national regulators •Changes give EU more powers. Emergency declared by the Commission without involvement of the Council. Unclear emergency procedure. •MS should decide first what will ESAs do and how
  17. 17. Critics R e a l a r g u m e n t s •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, Switzerland and others are doing Global cohesion:
  18. 18. Fiscal responsibilities of MS: Critics R e a l a r g u m e n t s •June’s ECOFIN mandate (shoulnd’t impinge on the fiscal responsibility of the MS) breached •EU financial supervisory structure needs an EU fiscal arrangement
  19. 19. Critics R e a l a r g u m e n t s •QMV to recognize the size and importance of financial services relative to GDP 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.
  20. 20. Options/Scenarios Approach Implications Effects Yes we can “Political” arrangement despite all the odds Fast, “big bang” type of approach Now, with the big stakes and big appointments discussed Yes but … Prolonged existence of the current L3 non-mandatory coordination Prolonged existence of CAN DOs and CAN’T DOs Until next financial crisis Is the money spent wisely? Substitutes: colleges? ECB role? New revised Commission’s proposal?
  21. 21. Contacts • DG Internal Market & Services website: http://ec.europa.eu/dgs/internal_market/index_en.htm • Piotr Madziar +32-(0)2-2950869 piotr.madziar@ec.europa.eu

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