Home/host delegation paper published by CEBS as part of its Basel II European implementation plan
LONDON – The Committee of European Banking Supervisors (CEBS), as part of its Basel II European implementation plan, has published a paper on supervisory delegation. The paper is the result of an in-depth analysis of delegation of supervisory tasks based on practical experience.
The Financial Services Committee in its Francq report recommended that supervisors develop a framework for delegation of supervisory tasks in the banking sector. Supervisors have been requested to explore the preconditions for the use of delegation mechanisms, especially through the use of guidelines, and where appropriate to test these arrangements.
CEBS has identified two areas in which delegation of tasks currently takes place: on-site examinations, including model validation, and liquidity concession models. The paper also elaborates on: the definition of delegation of tasks; current legal framework and cases for delegation; possible trends for the future; and criteria for the processes of delegation. Two reports fleshing out the current practices with respect to the two areas are annexed to the paper.CEBS asks that this paper should be regarded as a work in progress and that it is intended to provide information about the current situation and further possible progress regarding the delegation of tasks in banking supervision. The paper is also intended to facilitate the use of delegation in banking supervision such as by containing guidance on the process of delegation and clarifying legal obstacles.
Click here for a copy of the report.
More on Operational Risk
High-paid employees banned from reporting wrongdoing
Implementation points to LEI benefits and best practices
Regulators must take energy market manipulation seriously, argues Kaminski
Liquidity providers seek to improve electronic price formation
Sign up for Risk.net email alerts
Sponsored video: Elseware
Oxford professor David Vines argues that the carrot is as important as the stick
Sponsored webinar: IBM
Watch highlights of this year's London conference
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.