The European Commission has published a speech given by Charlie McCreevy (European Commissioner for Internal Market) on 11 September 2008. The speech is entitled Cross-border banking groups supervision.
In his speech Mr McCreevy states that the Commission will propose amendments to the Capital Requirements Directive proposals on colleges of supervisors and that these proposals will be available around the end of this month. For financial stability the Commission will further develop its policy in a White Paper that will be published early next year on early intervention tools for dealing with ailing banks.
Mr McCreevy also states that there is a consensus that colleges of supervisors are the best way at this stage to facilitate the supervision of cross-border banking groups. These colleges should remain flexible so as to cater for different circumstances and different organisational structures but have clear objectives. According to Mr McCreevy the Commission has decided to reinforce the powers of the consolidating supervisor for two supervisory aspects, capital add-ons for subsidiaries (Pillar 2) and prudential reporting requirements.
In the final part of his speech Mr McCreevy covers stress situations within banking groups. He states that the Commission is committed to addressing this issue in next year's White Paper on early intervention.
View EC speech - Cross-border banking groups supervision, 11 September 2008