Banking union - Commission proposals for a single banking supervision mechanism :
Extracts from the press conference by Michel BARNIER, Member of the EC in charge of Internal Market and Services
Première transmission: 12/09/2012
Brussels, Belgium - EC/Berlaymont
Fin de production: 12/09/2012
In order to put into action the conclusion of the European Council and Euro Area summit at the end of June 2012, on 12 September 2012 the Commission adopted a set of legislative proposals on the establishment of a single supervisory mechanism for banks led by the European Central Bank. The set was accompanied by a Communication on a roadmap for completing the banking union over the coming years.
Already in September 2009 the Commission brought forward proposals to replace the EU's existing supervisory architecture with a European system of financial supervisors (ESFS), consisting of three European Supervisory Authorities – a European Banking Authority, a European Securities and Markets Authority, and a European Insurance and Occupational Pensions Authority.
The three European supervisory authorities (ESAs) and a European Systemic Risk Board (ESRB) were established as from January 2011 to replace the former supervisory committees.
Only the original language version is authentic and it prevails in the event of its differing from the translated versions.
||Arrival of Michel BARNIER, Member of the EC in charge of Internal Market and Services
||Soundbite by Michel Barnier (In French) saying that: We are putting forward a major plan today in terms of financial economic integration. Less than 2 years since the La Rosière report implementation we are now moving on to coordination and this is something which is already important, something where the Parliament brought some genuine and added value, the coordination of supervisors and the integration of supervision for the banking sector in the Euro area. And behind all these words, what are we actually proposing to work together on is quite simply surveillance and control of the main sources of financing for the European economy. Let's not forget that banks in Europe fund 75% of the companies that work on our territory. In the US, we see a reveres proportion, 25 % paid by the banks and 75% by the market. So we are controlling and keeping an eye on the main source but we are also controlling and carry on surveillance on the sources of risks for the member states and the tax payers as crisis has reminded to us.
||SOUNDBITE by Michel Barnier (In French) saying that: First of all: Who is going to be carrying out the supervision?
The European Central Bank. Following the Treaty they are responsible for financial stability. How? By looking to the national supervisors who we know they have the know-how, the expertise and the human and technical resources to do that.
Which bank will be covered by this? All banks; that is the basic prerequisite to have confidence in this system working. We have seen with small banks and medium sized banks, everyone has been hit hard by this.
When? Well as soon as the text is approved; we have that it will be before the end of this year. The European Central Bank will then have a capacity to carry out direct supervision over any bank that it believes constitute a risk.
||SOUNDBITE by Michel Barnier (In French) saying that: The European Central Bank. is doing its work as an independent actor on monetary stability. The head of states and government in the end of June provided this global answer to the crisis to provide more flexibility for the European Stability Mechanism which has a possibility to directly recapitalize banks and the European Stability Mechanism will decide on the recapitalization through its own decision process and under its own responsibility. However, the precondition has been set and that has been met that the European Supervision is in force at the start of next year for that to go ahead.
||Michel Barnier leaving the press room