>> ESBG delegation meets with European Central Bank micro-prudential supervision directorates general
>> Also meets European Systemic Risk Board, discuss topics including important role of macro-prudential policy
BRUSSELS, 21 January 2015 – A delegation of ESBG’s Prudential and Supervision Committee (PSC) met today with the European Central Bank’s (ECB) Directorates General (DG) Micro-Prudential Supervision (MS) I, II and III.
The PSC delegation expressed their accounting-based concerns regarding the follow-up of the comprehensive assessment and also discussed possible future stress tests with the ECB.
While pointing out that stress test exercises are considered important, the ECB explained that a comprehensive assessment exercise does not necessarily need to be carried out every year. A more extensive, comprehensive assessment would only be undertaken at those banks which will enter the SSM – for example, banks from countries which join the Eurozone – and at less significant banks classified as "significant" banks. Discussed at the meeting were the definition of capital, the cooperation between the ECB and the national competent authorities, and the DGs’ work programmes for 2015.
Another meeting followed today with the Head of Secretariat of the European Systemic Risk Board (ESRB). Topics discussed include, inter alia, the important role of macro-prudential policy, the still existing systemic risk in Europe and the ongoing restructuring of the European banking sector.
On sovereign exposures, the ESRB announced that it will soon publish a report, which analyses the EU member states’ varying approaches with regard to sovereign exposures and focuses especially on the systemic aspects. However, the report will not include specific recommendations to the respective states.
About DG MS I, II and III
DG MS I and II are responsible for the direct supervision of significant financial institutions, whereas DG MS III, in cooperation with the competent national authorities, oversees "less significant" banks of participating EU member states.