Oireachtas Joint and Select Committees

Thursday, 5 February 2015

Committee of Inquiry into the Banking Crisis

Context Phase

Mr. Mario Nava:

Wait. We need to clarify one thing, if I may. Sanctions are when a country does not transpose correctly a piece of law called the directive. That is a sanction. If a bank goes below the minimum, the national supervisor withdraws the licence or accompanies the bank toward the process of resolution. That is what happens.

On the 120 banks, there is a big distinction between the country and the banks. On the 120 banks that were moved to the ECB, before being moved to the ECB, the Deputy may remember that the week before the stress test and the so-called comprehensive assessment of the assets were made. So the ECB "acquired" - I am sure it is not the right word - or got power to supervise those banks after having had a thorough assessment of their assets and liabilities. This is the exercise of the stress test and the banks data-----

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