Written answers

Thursday, 3 October 2013

Department of Finance

European Banking Union

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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31. To ask the Minister for Finance the impact he expects the single European banking supervision mechanism will have on the day-to-day operation of Irish banks; and if he will make a statement on the matter. [41452/13]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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Under the agreement on a Single Supervisory Mechanism (SSM) the ECB will be the direct supervisor of the most significant credit institutions including those with assets of more than €30bn or with an asset-to-GDP ratio of 20%. To ensure the ECB is truly a European level supervisor it will also directly supervise the three most significant banks in each participating Member State. The Capital Requirements legislative package, CRD IV, contains a single rulebook for bank supervision and will apply to banks across the EU from 1 January 2014. When it assumes in full tasks under the SSM which is expected to be in late 2014, the ECB will apply the same CRD IV rules to banks under its supervision. Direct supervision by the ECB should not significantly impact on the banks concerned. In exercising direct supervision the ECB will continue to rely on the resources and cooperation of national supervisors.

While the ECB will be responsible for the supervision of all EU banks it will rely on national level supervisors for the day-to-day supervision of the less significant credit institutions. The ECB will issue instructions, regulations and guidelines to the national supervisors for tasks performed by the national supervisors as part of the SSM. The ECB retains the right to intervene in any bank, at any time. National supervisors will also remain in charge of tasks not conferred on the ECB, for instance in relation to consumer protection, anti-money laundering and payment services. In Ireland, the Central Bank of Ireland is the national level supervisor of credit institutions. The CBI is actively involved in the preparations for SSM in terms of its participation in all the main committees and their subgroups including also the appointment of staff to the ECB on a temporary basis.

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