European monetary system and european currency

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The bilateral mode involves co-operation between two supervisory agencies. It is used for cross-border supervision of the same type of financial institutions, such as credit institutions, or the supervision of different types of financial institutions operating in the same market, such as credit institutions and securities firms. The instrument that has been devised to organise bilateral co-operation between banking supervisors is the Memorandum of Understanding (MoU). With the implementation of the 2nd Banking Co-ordination Directive, the Member States began to negotiate extensively MoUs in order to establish the necessary co-operation between "home" and "host country" authorities to supervise efficiently institutions that have cross-border activities or foreign country establishments.

By the end of 1997, 78 bilateral MoUs had been signed between the EEA banking supervisory authorities. The key aims of MoUs are to establish a regular exchange of information between national supervisory authorities. While the "gateways" for the exchange of information have been laid down in Community legislation, MoUs provide a practical framework for communication to be carried out between supervisors. Moreover, MoUs define procedures and reciprocal commitments between pairs of EU supervisors related to the various parts of the supervisory process, such as establishment procedures and on-site examinations.

Finally, the multilateral mode is the one in which a group of supervisors works collectively as, say, a single consolidated supervisor. Such a mode is required when the problems involved are area-wide. They may be area-wide for a number of reasons with regard to the institutions, or groups, involved: their dimension; their linkages with a number of different markets in various countries; the role they play in the payment system or in other "systemic" components of the market, etc. Multilateral co-operation can also enhance the quality of supervision by examining common macroeconomic influences on the banking system and common trends in the financial system that may not be revealed from the national perspective only.

Today, the Banking Supervision Committee is the key forum for multilateral co-operation. It is composed of representatives of the banking supervisory authorities of the EU countries, either forming part of the respective NCB or separate bodies. The Banking Supervision Committee's main functions are the promotion of a smooth exchange of information between the Eurosystem and national supervisory authorities and co-operation among EU supervisory authorities. Another forum for dealing with the requirements of the multilateral mode is the Groupe de Contact, a group of EU banking supervisory authorities which, for many years, has discussed individual banking cases in a multilateral way, but at a lower organisational level than the high-level Banking Supervision Committee.

19. So far, the need to develop the multilateral mode has been relatively limited, as the emergence of a single banking market in the European Union has been slow and the euro was not yet in place. Thus, the fact that the multilateral mode has not gone, for the moment, beyond periodic discussions among supervisors and occasional industry-wide analyses should not be a cause for concern.

I am convinced, however, that in the future the needs will change and the multilateral mode will have to deepen substantially. Over time such a mode will have to be structured to the point of providing the banking industry with a true and effective collective euro area supervisor. It will have to be enhanced to the full extent required for banking supervision in the euro area to be as prompt and effective as it is within a single nation.

There are no legal impediments to that. The existing legislation, whether Community or national, permits all the necessary steps to be made. Information can be pooled; reporting requirements and examination practices can be developed and standardised; common databases can be created; joint teams can be formed; and analyses of developments across the whole banking system can be conducted. The Community legislation providing for the unconstrained exchange of confidential information between supervisors does not distinguish between bilateral and multilateral co-operation, but the common interpretation is that it covers both modes. It will be the task of the Banking Supervision Committee, for its part, to develop the multilateral mode among EU banking supervisors.

20. If the above concerns primarily the euro area supervisor, what about the euro area central banker, i.e. the Eurosystem? The euro area central banker has neither direct responsibility for supervising banks nor for bank stability. It is, however, no stranger in this land. It has a vital interest in a stable and efficient banking industry; it is, therefore, keen to see its action complemented with an effective conduct of the supervisory functions by the competent authorities; it needs a clear and precise knowledge of the state of the euro area's banking industry as a whole and of its major individual players; and it may have a role to play, as we shall see, in the management of crises.

Реферат опубликован: 12/08/2008