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Corporate Governance
of Banks in Eurasia
Mr Michael Wurz,Director of Financial Markets Analysis and Surveillance Division, Austrian National Bank
CEBS and its guidelines on supervisory disclosure
London, United Kingdom
30 April 2008The views expressed in this paper are those of the author and do not necessarily represent the opinions of the OECD
or its Member countries or the European Bank for Reconstruction and Development
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1. Introduction of CEBS
2. The Supervisory Disclosure Framework
Agenda
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Committee of European Banking Supervisors
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CEBS` composition and tasks
High-level representatives from all 27 EU-Member States:
EU banking supervisory authorities
EU central banks and European Central Bank (ECB)
„Advice“ – to advise the European Commission on banking issues
„Convergence“ – to foster a common day-to-day implementation and application of Community legislation
„Cooperation“ – to promote supervisory cooperation and provide for the exchange of supervisory information
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Examples of CEBS` working areas
Advice
Own funds
Large exposures
Liquidity
Basel II implementation
Guidelines (e.g. Pillar 2)
Reporting frameworks
Peer Review
Cross-border supervision
Home-host cooperation
Operational networking / Supervisory colleges
Crisis management
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1. Introduction of CEBS
2. The Supervisory Disclosure Framework
Agenda
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Definition
Supervisory disclosure is defined as a comprehensive policy of
transparency.
Its aim is to make information related to prudential supervision
available in a timely manner to all interested parties.
The framework for supervisory disclosure is meant only to provide
information.
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Objectives
Enhancing the effectiveness of supervision
comprehensive overview of the supervisory and regulatory framework in
the EU
easy access to information via internet
Helping to promote a levelplaying field throughout Europe
consistent implementation of legislation across the EU
meaningful comparisons of the choices made at the national level in the
implementation of the CRD
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Content of Disclosure
The content follows Article 144 of Directive 2006/48/EC requiring competent authorities to disclose four main types of information:
1. ‘Rules and guidance’ covers national laws and regulations in the
field of prudential supervision and regulation,
2. ‘Options and national discretions’ refers to the information about howoptions and national discretions are exercised,
3. ‘Supervisory review’ deals with the general criteria and methodologiesused by competent authorities in their supervisory review and evaluationprocess referred to in Article124,
4. ‘Statistical data’ refers to statistical data on key aspects of the
implementation of the prudential framework.
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The common European supervisory disclosure framework is
based on the following principles:
Neutrality with regard to the legal framework of each Member State
Availability of information in English, to be provided on a best
effort basis, taking due account of the translation burden for non
English-speaking countries
Confidentiality principle on exchange of information and
professional secrecy as stated in the CRD apply
Avoidance of disproportionate burden for supervisors
Annual review of the framework
The underpinning principles
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Main navigation
Link to the sites of
national authorities
Link to CEBS
Guidelines
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Link to the text
on CEBS
website
Link to national
website for more
detailed information
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Useful Links
A demonstration of the functionality of the framework is
available on the CEBS website at
www.c-ebs.org/SD/SDTF.htm.
Link to the CEBS Guidelines on Supervisory Disclosure
www.c-ebs.org/pdfs/GL05.pdf.
Webpage for queries and responses to facilitate correct and
coherent transposition of the CRD in all MS’ legislations:
www.c-ebs.org/crdtg.htm
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Conclusions
The framework is the first step towards greater transparency on the
part of supervisors.
It is also an evolutionary process capable of adapting gradually to
future changes in the rules, needs and practices of both supervisors
and institutions.
As disclosure of information by banks is expected to support market
discipline, supervisory disclosure is expected to act as a disciplinary
device towards consistent implementation of the CRD.
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Thank you
for your attention
Contact:
Dr. Michael Würz
Financial Markets Analysis and
Surveillance Division
Oesterreichische Nationalbank
Otto-Wagner-Platz 3
A-1090 Vienna
Tel: +43-1/404 20-3101
Fax: +43-1/404 20-3199
Email: [email protected]
