Home-host hearing raises key issues

LONDON – Although the tone of the October 5 public hearing at the secretariat of the Commission of European Banking Supervisors (CEBS) on guidelines for greater supervisory co-operation between consolidating supervisors and host supervisors (CP-09) was generally positive, industry executives focused their questions on the practical realities of implementation. Attendees stressed that the devil is in the detail, and questions focused on areas such as managing communication between and within regulators and banking groups, where the decision to apply for Advanced Measurement lie, and just how transparent the communication process will be from a bank's perspective.

For its part, the CEBS watchwords were transparency, dialogue and the flexibility to treat situations on a case-by-case basis. The CEBS, which held the meeting hot on the heels of passage of the Capital Requirements Directive (CRD), pointed out that European supervisors have been expanding and improving communication, and said that for the most part the systemisation of communication is proving successful. It also used the meeting to reinforce its message that it welcomed and expected further