15 October 2007
The Committee of European Banking Supervisors (CEBS) is publishing today the Protocol and Methodology for a peer review mechanism. A group dedicated to conducting peer reviews – the Review Panel - is being set up and CEBS is now implementing ‘peer review' as a powerful tool for convergence.
As set out in the rules and related procedures, the Review Panel is mandated to assess the degree of convergence reached by CEBS members in the implementation of a given supervisory provision or practice. To do so, CEBS relies on self-assessments conducted by its members against clear and objective implementation criteria, and independent reviews conducted by the Review Panel. Consistent with the so-called ‘comply or explain' approach, should a member have not implemented a given supervisory provision or practice, then it will have to explain why.
The credibility and the effectiveness of the mechanism are assured by the independence of the Review Panel, by a clear and objective methodology, and by the transparency of the process.
CEBS has benefited from the experience of CESR when designing its mechanism. The protocol and methodology is published under: standards