{"id":17779,"date":"2022-09-17T20:29:48","date_gmt":"2022-09-17T20:29:48","guid":{"rendered":"http:\/\/legalblog.ie\/?p=17779"},"modified":"2022-09-25T14:04:40","modified_gmt":"2022-09-25T14:04:40","slug":"ecb","status":"publish","type":"post","link":"https:\/\/legalblog.ie\/ecb\/","title":{"rendered":"ECB [EU]"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_63 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/legalblog.ie\/ecb\/#Supervising_banks_health_ECB_accountability_and_transparency\" title=\"Supervising banks&#8217; health: ECB accountability and transparency\">Supervising banks&#8217; health: ECB accountability and transparency<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/legalblog.ie\/ecb\/#Summary\" title=\"Summary\">Summary<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/legalblog.ie\/ecb\/#References\" title=\"References\">References<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/legalblog.ie\/ecb\/#Close_cooperation_within_the_Single_Supervisory_Mechanism_with_non-euro_EU_countries\" title=\"Close cooperation within the Single Supervisory Mechanism with non-euro EU countries\">Close cooperation within the Single Supervisory Mechanism with non-euro EU countries<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/legalblog.ie\/ecb\/#Key_Points\" title=\"Key Points\">Key Points<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/legalblog.ie\/ecb\/#Supervision_under_close_cooperation\" title=\"Supervision under close cooperation.\">Supervision under close cooperation.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/legalblog.ie\/ecb\/#Suspension_or_termination_of_close_cooperation\" title=\"Suspension or termination of close cooperation:\">Suspension or termination of close cooperation:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/legalblog.ie\/ecb\/#Application\" title=\"Application\">Application<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/legalblog.ie\/ecb\/#MAIN_DOCUMENTS\" title=\"MAIN DOCUMENTS\">MAIN DOCUMENTS<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"Supervising_banks_health_ECB_accountability_and_transparency\"><\/span>Supervising banks&#8217; health: ECB accountability and transparency<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The European Central Bank (ECB) is accountable to the European Parliament when exercising its power of European banking supervision.<\/p>\n<p>Interinstitutional Agreement 2013\/694\/EU between the European Parliament and the European Central Bank on the practical modalities of the exercise of democratic accountability and oversight over the exercise of the tasks conferred on the ECB within the framework of the Single Supervisory Mechanism.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Summary\"><\/span>Summary<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The ECB, as the supervisor of Eurozone banks, has an obligation to be transparent and accountable to the European Parliament (EP). The new task has been assigned to it in response to the 2008 crisis in order to ensure European banking supervision is less dependent on national considerations (for further details, refer to EU legislation establishing a \u2018single supervisory mechanism\u2019).<\/p>\n<p>This is key for the legitimacy of its supervisory role. It is the first time substantial powers to supervise banks have been transferred from national to European level. Decisions can be very sensitive since they assess banks\u2019 financial health. For instance, the ECB can require a bank to hold more capital.<\/p>\n<p>By contrast, the ECB remains fully independent when exercising its initial role of being responsible for monetary policy in the Eurozone. Here, the main objective is to ensure price stability.<\/p>\n<p>The practicalities governing the democratic oversight of the ECB\u2019s new supervisory task by the EP are set out in an interinstitutional agreement reached between both institutions in 2013. The key elements are:<\/p>\n<p>1.Hearings and discussions<\/p>\n<p>The ECB has to appear regularly at public hearings before the EP. Both institutions can hold oral discussions behind closed doors. In this case, the participants are subject to confidentiality requirements. The ECB has to submit a report on the execution of its new supervisory task to the EP every year.<\/p>\n<p>2.Access to information<\/p>\n<p>The ECB provides the EP with a comprehensive and meaningful record of discussions at meetings of the ECB\u2019s supervisory board.<\/p>\n<p>3.Investigation<\/p>\n<p>The EP can launch investigations into possible mistakes by the ECB when exercising its supervisory task. In that situation, the ECB has to cooperate fully with the EP.<\/p>\n<p>4.Appointments<\/p>\n<p>The EP is involved in the appointments of the Chair and the Vice-Chair of the ECB\u2019s supervisory board.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"References\"><\/span>References<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Act<\/p>\n<p>Entry into force<\/p>\n<p>Deadline for transposition in the Member States<\/p>\n<p>Official Journal<\/p>\n<p>Interinstitutional Agreement 2013\/694\/EU<\/p>\n<p>OJ L 320 of 30.11.2013<\/p>\n<p>RELATED ACT<\/p>\n<p>Council Regulation (EU) No 1024\/2013 of 15 October 2013 conferring specific tasks on the European Central Bank concerning policies relating to the prudential supervision of credit institutions (OJ L 287, 29.10.2013).<\/p>\n<p>European Central Bank \u2014<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Close_cooperation_within_the_Single_Supervisory_Mechanism_with_non-euro_EU_countries\"><\/span>Close cooperation within the Single Supervisory Mechanism with non-euro EU countries<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Regulation (EU) No 1024\/2013 conferring specific tasks on the European Central Bank concerning policies relating to the prudential supervision of credit institutions (SSM regulation)<\/p>\n<p>Regulation (EU) No 468\/2014 establishing the framework for cooperation within the Single Supervisory Mechanism between the European Central Bank and national competent authorities and with national designated authorities (SSM framework regulation) (ECB\/2014\/17)<\/p>\n<p>Decision 2014\/434\/EU on the close cooperation with the national competent authorities of participating Member States whose currency is not the euro (ECB\/2014\/5) (ECB decision on close cooperation)<\/p>\n<p>Decision (EU) 2020\/1015 establishing close cooperation between the European Central Bank and \u0411\u044a\u043b\u0433\u0430\u0440\u0441\u043a\u0430 \u043d\u0430\u0440\u043e\u0434\u043d\u0430 \u0431\u0430\u043d\u043a\u0430 (Bulgarian National Bank) (ECB\/2020\/30)<\/p>\n<p>Decision (EU) 2020\/1016 establishing close cooperation between the European Central Bank and Hrvatska Narodna Banka (ECB\/2020\/31)<\/p>\n<p>It establishes the principles and procedures for close cooperation within the Single Supervisory Mechanism (SSM) between the European Central Bank (ECB) and EU Member States whose currency is not the euro.<\/p>\n<p>Bulgaria and Croatia are the first two non-euro-area EU Member States that have entered into close cooperation starting on 1 October 2020.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Key_Points\"><\/span>Key Points<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The European system of banking supervision (SSM) was established as the system of banking supervision composed of the ECB and national competent authorities (NCAs) of participating Member States to ensure safe and sound banks, a stable and integrated financial system and the consistent supervision of all banks. All euro-area countries participate automatically in European banking supervision.<\/p>\n<p>Member States whose currency is not the euro can participate in the SSM by requesting the establishment of close cooperation between the ECB and their NCA. Once close cooperation has been established, these Member States can join both the SSM and the Single Resolution Mechanism, which ensures an orderly resolution of failing banks.<\/p>\n<p>Under the close cooperation, the NCAs are obliged to adopt any measure in relation to supervised entities at the request of the ECB. The legal acts adopted by the ECB are binding and enforceable and the NCAs must provide the ECB with all information necessary for the purposes of carrying out the tasks conferred on it within the SSM.<\/p>\n<p>The SSM regulation, the SSM framework regulation and the ECB decision on close cooperation describe the process of establishing close cooperation and how it works.<\/p>\n<p>Steps for the establishment of close cooperation:<\/p>\n<p>1.the non-euro-area Member State formally requests to join the SSM;<\/p>\n<p>2.the non-euro-area Member State prepares and adopts national legislation that allows the ECB to exercise its supervisory tasks within the framework of close cooperation, and the ECB assesses that legislation;<\/p>\n<p>3.the ECB carries out a comprehensive assessment of the banks of the Member State concerned, similar to that conducted on euro-area banks in 2014 before the SSM was set up;<\/p>\n<p>4.the ECB adopts a decision that indicates how supervisory tasks will be transferred to the ECB and when the close cooperation will commence.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Supervision_under_close_cooperation\"><\/span>Supervision under close cooperation.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Once close cooperation is established, the Member State concerned becomes a member of the SSM and its NCA is in a position comparable to all other NCAs of Member States participating in the SSM. This means that significant credit institutions in the countries participating in close cooperation will be supervised by the ECB via instructions given to the NCAs, and credit institutions classified as less significant will continue to be supervised by the NCAs, with the ECB performing an oversight role.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Suspension_or_termination_of_close_cooperation\"><\/span>Suspension or termination of close cooperation:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>the ECB may suspend the close cooperation for up to 6 months, giving reasons for its decision;<br \/>\nthe termination of the close cooperation can be initiated by the ECB or by the Member State with which there is close cooperation.<br \/>\nThe establishment of close cooperation contributes to the safety and soundness of banks and fosters the process of financial integration across the single market.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Application\"><\/span>Application<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Regulation (EU) No 1024\/2013 has applied since 3 November 2013.<br \/>\nRegulation (EU) No 468\/2014 has applied since 15 May 2014.<br \/>\nDecision 2014\/434\/EU entered into force on 27 February 2014.<br \/>\nDecisions (EU) 2020\/1015 and (EU) 2020\/1016 have applied since 1 October 2020.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"MAIN_DOCUMENTS\"><\/span>MAIN DOCUMENTS<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Council Regulation (EU) No 1024\/2013 of 15 October 2013 conferring specific tasks on the European Central Bank concerning policies relating to the prudential supervision of credit institutions (OJ L 287, 29.10.2013, pp. 63-89)<\/p>\n<p>Regulation (EU) No 468\/2014 of the European Central Bank of 16 April 2014 establishing the framework for cooperation within the Single Supervisory Mechanism between the European Central Bank and national competent authorities and with national designated authorities (SSM Framework Regulation) (ECB\/2014\/17) (OJ L 141, 14.5.2014, pp. 1-50)<\/p>\n<p>Decision 2014\/434\/EU of the European Central Bank of 31 January 2014 on the close cooperation with the national competent authorities of participating Member States whose currency is not the euro (SSM Regulation) (ECB\/2014\/5) (OJ L 198, 5.7.2014, pp. 7-13)<\/p>\n<p>Decision (EU) 2020\/1015 of the European Central Bank of 24 June 2020 on the establishment of close cooperation between the European Central Bank and \u0411\u044a\u043b\u0433\u0430\u0440\u0441\u043a\u0430 \u043d\u0430\u0440\u043e\u0434\u043d\u0430 \u0431\u0430\u043d\u043a\u0430 (Bulgarian National Bank) (ECB\/2020\/30) (OJ L 224I, 13.7.2020, pp. 1-3)<\/p>\n<p>Decision (EU) 2020\/1016 of the European Central Bank of 24 June 2020 on the establishment of close cooperation between the European Central Bank and Hrvatska Narodna Banka (ECB\/2020\/31) (OJ L 224I, 13.7.2020, pp. 4-6)<\/p>\n<!--themify_builder_content-->\n<div id=\"themify_builder_content-17779\" data-postid=\"17779\" class=\"themify_builder_content themify_builder_content-17779 themify_builder tf_clear\">\n    <\/div>\n<!--\/themify_builder_content-->\n","protected":false},"excerpt":{"rendered":"<p>Supervising banks&#8217; health: ECB accountability and transparency The European Central Bank (ECB) is accountable to the European Parliament when exercising its power of European banking supervision. Interinstitutional Agreement 2013\/694\/EU between the European Parliament and the European Central Bank on the practical modalities of the exercise of democratic accountability and oversight over the exercise of the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[128,166],"tags":[],"_links":{"self":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/17779"}],"collection":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/comments?post=17779"}],"version-history":[{"count":2,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/17779\/revisions"}],"predecessor-version":[{"id":18365,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/17779\/revisions\/18365"}],"wp:attachment":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/media?parent=17779"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/categories?post=17779"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/tags?post=17779"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}