Hearing with Andrea ENRIA, Chairman of the European Banking Authority:
Première transmission: 19/09/2012
Brussels, Belgium - European Parliament
Fin de production: 19/09/2012
- extracts from the hearing
EP Committee on Economic and Monetary Affairs
Only the original language version is authentic and it prevails in the event of its differing from the translated versions.
||Exterior shot of the European Parliament, Brussels, Belgium (1 shot)
||Interior view of the ECON meeting, (1 shot)
||SOUNDBITE (English): Andrea ENRIA, Chairman of the European Banking Authority: "There is still quite a long way to go in terms of harmonising the rules, then when I say that, even by harmonising the rules, you have at the National level very different methodologies for accessing the risks of banks and triggering supervisory correcting action. So there are different boxes that can give with the same rules different supervisory outcomes of course we are starting to take consolidate with the stress test and the recapitalisation exercise, but what I think what is really needed is what is in the communication of the Commission in the Banking Union package a Single supervisory handbook."
||SOUNDBITE (English): Andrea ENRIA, Chairman of the European Banking Authority: "The stress test has got a lot of criticism, here and there, I really think that we did a tremendous job in terms of insuring consistency of the date we received, pushing capital increases in a moment in which this was badly needed, as I say the amount of capital injected in the system is at least 3 x as high as the capital increased what happend in the U.S. in 2009, so the strengthening of the system has been hug."
||SOUNDBITE (English): Andrea ENRIA, Chairman of the European Banking Authority: "My point is that going forward, we need to make sure when given the responsibility to conduct stress test, we are also been giving the legal tools to make sure that the results are actually reliable. We need to be in a position to go to the banks and to interact directly with the banks and make sure that the data of the bank they gave us are reliable and this is not the case at the moment unfortunately."
||SOUNDBITE (English): Andrea ENRIA, Chairman of the European Banking Authority: "The ECB (European Central Bank) will need to move very quickly to common rules, you cannot have not have different rules applying to different banks under the jurisdiction of the Single Supervisor. And the legislation which is under discussion in at your table now is still leaving quite a lot of room for National flexibility, so the risk is that you have rules in the Euro area and flexibility for the rest of the Single market and that leads to a polarisation. The second point is supervisory practice, the ECB has to push towards a single way of doing supervision in the Euro area, it is unique opportunity to this at the Single market level, to move in the same direction, same methodologies, really consistent approaches for the Single market as a whole."
||SOUNDBITE (English): Steven J. MAIJOÒR, Chairman of the European Securities and Markets Authority: "We can do a lot of supervisor, but the underline sectorial legislation needs to help us, I think there are 2 areas, very briefly, we need to have powers to ban certain products or activities, I think it is important, it will be exceptionally, but it is important to have it. But also I would like to emphasize that we need to move on topic on inducements. As you are aware we have public guidelines of remuneration of investment firms, but there is also the problem of inducements that they are given by the originator by the products vis-à-vis the adviser that advises the product."
||SOUNDBITE (English): Andrea ENRIA, Chairman of the European Banking Authority: "You gave us important powers in areas of breach of law, mediation, consumer protection and emergency situations. These important powers are linked to the existence of regulations, so this means that it has been difficult so far for us to activate these powers, because in banking we have yet any regulation basically already in place, directly applicable rules, so this is an important issue, I would also say that in some cases, I have the impression that we either the soft tool of trying to convince National authorities to cooperate or the 'bazooka' or shooting them with a formal process, there is something missing in-between."
||cut away shots, (4 shots)