CEBS and its Guidelines on Supervisory Disclosure of European Banking Supervisors. 4 Oesterreichische Nationalbank CEBS` composition and tasks High-level representatives from all 27

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30 April 2008 www.oenb.at [email protected]

CEBS and its Guidelines on Supervisory CEBS and its Guidelines on Supervisory DisclosureDisclosure

Michael WürzHead

Financial Markets Analysis and Surveillance DivisionOeNB

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Oest er r eichische Nat ional bank

1. Introduction of CEBS1. Introduction of CEBS

2. The Supervisory Disclosure Framework2. The Supervisory Disclosure Framework

AgendaAgenda

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Committee of European Banking SupervisorsCommittee of European Banking Supervisors

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CEBS` composition and tasksCEBS` composition and tasks

High-level representatives from all 27 EU-Member States: EU banking supervisory authoritiesEU 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 areasExamples of CEBS` working areas

AdviceOwn fundsLarge exposuresLiquidity

Basel II implementationGuidelines (e.g. Pillar 2)Reporting frameworksPeer Review

Cross-border supervisionHome-host cooperation Operational networking / Supervisory collegesCrisis management

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1. Introduction of CEBS1. Introduction of CEBS

2. The Supervisory Disclosure Framework2. The Supervisory Disclosure Framework

AgendaAgenda

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DefinitionDefinition

Supervisory disclosure is defined as a comprehensive policy of transparency.

Its aim is to make information related to prudential supervisionavailable in a timely manner to all interested parties.

The framework for supervisory disclosure is meant only to provide information.

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ObjectivesObjectives

Enhancing the effectiveness of supervision

comprehensive overview of the supervisory and regulatory framework in the EUeasy 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 DisclosureContent 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 thefield of prudential supervision and regulation,

2. ‘Options and national discretions’ refers to the information about how options and national discretions are exercised,

3. ‘Supervisory review’ deals with the general criteria and methodologies used by competent authorities in their supervisory review and evaluation process referred to in Article124,

4. ‘Statistical data’ refers to statistical data on key aspects of theimplementation 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 StateAvailability of information in English, to be provided on a best effort basis, taking due account of the translation burden for non English-speaking countriesConfidentiality principle on exchange of information and professional secrecy as stated in the CRD applyAvoidance of disproportionate burden for supervisorsAnnual review of the framework

The underpinning principlesThe underpinning principles

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Main navigationLink 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 LinksUseful Links

A demonstration of the functionality of the framework is available on the CEBS website atwww.c-ebs.org/SD/SDTF.htm.

Link to the CEBS Guidelines on Supervisory Disclosurewww.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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ConclusionsConclusions

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 Thank you for your attentionfor your attention

Contact:Dr. Michael WürzFinancial Markets Analysis and Surveillance Division Oesterreichische NationalbankOtto-Wagner-Platz 3A-1090 ViennaTel: +43-1/404 20-3101Fax: +43-1/404 20-3199Email: [email protected]