Co operation in the field of banking supervision and financial stability from foreign exchange trading .

We have achieved important results on the way to a banking union, notably on supervision.

This includes meetings that are part of the surveillance process with euro area authorities , namely Article IV surveillance over the common monetary and exchange rate policies of the euro area and the policies of individual euro area Member States

The BSC also helps the ECB to perform its advisory tasks in the field of banking supervision and financial stability .

Finally , the euro area itself was examined as part of the international policy surveillance exercises .

Its tasks also include promoting supervisory convergence and providing advice to the EU institutions in areas of securities and markets regulation and supervision , as well as related corporate governance and financial reporting issues .

2 F I N A N C I A L R E G U L AT I O N A N D S U P E R V I S I O N 2.1 BANKING In the field of banking supervision , the reform of the capital adequacy framework remained a major issue in 2004 .

Finally , the ECB cooperates with other relevant fora operating in the field of prudential supervision and financial stability .

The Commission's project monitoring policy consists of different instruments preventative project monitoring, desk monitoring, financial monitoring and visits in situ to projects (field monitoring).

In the field of prudential supervision , an agreement was reached between the EMI and the European Commission in order to strengthen co operation between the two institutions .

It also aims to develop the Central Bank of Egypt 's capabilities in the area of macro prudential supervision , regulation and training .

Prior supervisory approval

overseeing the development of the ECU .

Nevertheless , at present , in ten out of twelve euro area countries , national central banks ( NCBs ) are either directly responsible for prudential supervision or have close institutional links with the separate supervisory agency , or else are strongly involved in the operational performance of supervisory tasks .

Multilateral surveillance The ECB participated in the exchange of information and views with other policymakers in multilateral organisations and fora . Regular meetings on monetary , financial and economic developments and policies in major economic areas contributed to , inter alia , clarifying views on current policies in the euro area and on the impact of external developments on the euro area economy .

Finally , the euro area itself is subject to international policy surveillance exercises .

Independence of supervisory authority from political interference is important for effective supervision .

Market monitoring Prior supervisory approval

In the area of payment systems oversight , a common understanding among banking supervisors on the flow of information to NCBs acting as payment systems overseers has already been reached .

The CESR , which operates as a body independent from the Commission , brings together the heads of the national public authorities competent in the field of securities regulation and supervision .

In a framework of multilateral surveillance , euro area Member States are obliged to submit stability programmes to the EU Council and the European Commission .

The present note intends to present arguments supporting the preservation of a fundamental role for NCBs in prudential supervision in euro area countries .

In the area of prudential supervision and financial stability , the ECB may participate in relevant international meetings and state its positions alongside those of the national authorities that have competence in this field ( e.g. NCBs and national supervisory agencies ) .

Finally , the euro area itself is subject to international policy surveillance exercises . Both the IMF and the OECD conducted their

Finally , the euro area itself is subject to international policy surveillance exercises .

The crisis exposed shortcomings in the area of cooperation , coordination , consistent application of Community law and trust between national supervisors .

In the area of the single monetary policy , a common understanding has been reached among banking supervisors on the basic features of the flow of supervisory information to the Eurosystem .

overseeing the development of the ECU .

Oversight is therefore different from banking supervision .

and member of the Supervisory Board , Oesterreichische Laenderbank AG

performing its advisory function under Articles 4 and 25.1 of the Statute of the ESCB

performing its advisory function under Articles 4 and 25.1 of the Statute of the ESCB

Furthermore , it is extremely important that close oversight of relative competitiveness developments be implemented and that a surveillance mechanism be established to address imbalances in the euro area countries .

MONITORING

PRUDENTIAL SUPERVISION Article 25 Prudential supervision

The Eurosystem project was implemented by the ECB in partnership with nine euro area NCBs and three EU non central bank supervisors .

conduct peer review analysis of competent authorities , to strengthen consistency in supervisory outcomes

Strengthening the role of the consolidating supervisor would therefore reduce the overall supervisory burden on such a banking group .

ECB Opinion on the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies

conduct peer review analysis of national supervisory authorities , to strengthen consistency in supervisory outcomes

In a framework of multilateral surveillance , euro area participants are obliged to submit stability programmes to the EU Council and the European Commission .

The Committee of European Banking Supervisors shall monitor the range of practices in this area and draw up guidelines in order to ensure convergence .

to strengthen the coordination and surveillance of their budgetary discipline

( ii ) improving the framework for competitiveness surveillance

The subsidiary operates under the supervision of the mother company .