25 September 2007
The Committee of European Banking Supervisors (CEBS) is publishing today a Protocol for a mediation mechanism, after having submitted it for public consultation on 19 March 2007
During the consultation period, CEBS organised a public hearing and received a number of written comments from industry participants.
In general, market participants were supportive of the proposed peer mechanism tool aimed at helping to solve supervisory disputes as they arise in a cross-border context.
Some respondents commented on the general functioning of CEBS and the status of L3 tools. These comments touched upon issues of highest relevance for CEBS in general, which however go beyond the scope of the mechanism and therefore were not addressed in the finalisation of the mechanism.
CEBS has taken note of some respondents' doubts as to how effective the mediation tool will be in practice as the outcome of a mediation process is not, legally non binding and concerns that the mechanism may be too complex to operate smoothly; CEBS is confident that the mechanism is practical and will be an effective convergence tool; the feedback statement addresses these issues.
The objective remains to facilitate and speed up the supervisory procedures set out in the Capital Requirements Directive and to support the application of the pre-existing cooperation tools among supervisors such as the CEBS Guidelines on validation and on home/host cooperation.
CEBS reiterates its commitment to using all tools at its disposal, including mediation, to achieve further convergence and reduce the supervisory burden of cross-border banking groups.
CEBS recognises that this is a learning-by-doing process and the mechanism will be subject to review in two years time, in light of the experience gained.