The Committee of European Banking Supervisors (CEBS) has published a Consultation Paper on a mediation mechanism between banking supervisors. The Consultation Paper sets out the basic principles and key features of the mediation mechanism.
The mediation mechanism will be a tool that will assist the solving of supervisory disputes as they arise in a cross-border context. The purpose of the mediation mechanism will be to support existing cooperation tools among European supervisors such as the CEBS Guidelines on validation and on home/host cooperation. The mediation mechanism will only be used in cases where all other cooperation mechanisms have failed.
The consultation period closes on 19 June 2007. CEBS intends to test the mediation mechanism in 2008 and review it in two years time.