Today may turn out as a historical date marking "the big step forward" regarding the stability and integration of the European Banking Market", Hervé Guider - General Manager of the EACB - pointed out today, while adding: "The European Co-operative Banks welcome the agreement which creates a one tier single supervisory system (SSM) for all banks in the Euro area, while at the same time reflecting practical realities and subsidiarity aspects'.
The members of the EACB which voices the concerns of 4.000 co-operative banks take note that the ECB will have direct oversight over all banks in the Eurozone in close cooperation with national supervisory authorities. "The differentiation between a more direct supervision of the ECB for banks with a certain systemic relevance on one hand and stronger responsibility of national supervisors for smaller banks with sufficient intervention powers of the ECB on the other hand meets the right balance and reflects a pragmatic approach of the Council" said Hervé Guider.
Moreover, it makes a much more realistic aim of the objective of the ECB taking its responsibilities in 2014.The EACB also appreciates the solutions found for a strict separation of the supervisory and monetary tasks of the ECB.
The European Co-operative Banks will closely follow the processes over the coming months, during which a "single supervisory handbook" will have to be established in order to ensure that the particularities of co-operative banks, which are mainly focussed on retail business are well reflected.
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