The Committee of European Banking Supervisors (CEBS) today publishes its response to the European Commission's Call for Technical Advice No. 10 on the reduction of options and national discretions in the Capital Requirements Directive.
CEBS's Advice to the Commission, in parallel with the expiration of some options and national discretions, will result in 80% reduction of the present discretions available for EU members in the Capital Requirements Directive. The reduction is expected to have a positive effect on supervisory convergence in Europe and will diminish compliance costs for institutions.
CEBS is proposing to keep as an option or national discretion 28% of the 152 provisions covered in its analysis. However, approximately one third of these national discretions (8% of the total) will expire within a relatively short period.
For the other discretions CEBS is proposing solutions that it believes can bring about further harmonization of supervisory practices in the EU and levelling of the playing field among institutions.
CEBS believes its proposals strike the right balance between the prudential concerns of its Members, the flexibility supervisors need to perform their duties and the interests of domestic institutions and those that operate cross-border.
When elaborating its views, CEBS has benefited from input provided by the industry both in a formal consultation and in meetings with experts representing a broad range of market participants. CEBS has also conducted a high level impact assessment/cost-benefit analysis on its proposals.
CEBS encourages the European Commission to give effect to its Advice as soon as possible as the result is expected to have a positive impact on supervisory convergence in Europe.