Brussels, 27/11/2013 (Agence Europe) - Danièle Nouy, the ECB's candidate for the presidency of the future single supervision committee under the aegis of the ECB, spoke of her substantial experience in banking supervision and showed a genuine commitment to European banking integration at her hearing by the competent committee of the European Parliament on Wednesday 27 November.
Currently Secretary General of the French Prudential Control Authority, Nouy has spent “her whole career” in banking supervision. She has acquired an in-depth knowledge of the banking industry “at national, European and international levels”, in favourable economic periods and in times of crisis, she said, referring to her previous positions within the predecessor of the European Banking Authority (EBA) and the Bâle Committee. Admittedly, “I have no experience as a banker, which would have been an additional asset”, she also acknowledged.
Pledging her “long-standing commitment” to European integration, she sees the single banking mechanism as “a very powerful tool” in tackling the current problems in the banking industry, facilitating the reinforcement of the economic and monetary union and bringing banking supervision into a “new era” via the combined introduction of a new culture and a body of uniform rules. This mechanism will also help to limit the temptation to revert to nationalist attitudes, particularly in terms of “ring fencing”, protecting retail activities from market fluctuations and risks specific to investment banks.
Among the challenges facing the single supervision committee, Nouy referred to keeping up the pace of the implementation of single supervision between now and November 2014, sending out the “right signal” in order to establish the ECB's reputation as European supervisor in advance and the importance of having safety nets in place once the results of the assessment of the solidity of the banking sector have been announced. In this field, the EBA, which will play an increasingly regulatory role (see its guidelines on dubious credit and restructured credit), should be involved in the work of the single supervisory mechanism “as often as possible”, particularly in the framework of the stress tests it will carry out while the ECB evaluates the balance sheets of the 128 banks under its direct supervision. In order to preserve the integrity of the single market, Nouy is also in favour of the greatest possible involvement of EU countries which are not involved in banking union in the work of the single supervisory mechanism.
The senior French official, who favours a European law separating retail and investment banking activities, said that the single banking supervisory mechanism should apply “to all banks and not just banks of systemic importance”. As for the single banking resolution mechanism, currently being negotiated at the Council and the EP, she believes that it is “feasible” for the national resolution authorities to keep hold of certain competencies, particularly in the large countries with the necessary resources. However, “I would rather have a single authority”, she said.
When asked about the international dimension of banking union, Nouy said that, “in order to be heard”, it is necessary to “speak with one voice”. “Unfortunately, this has not always been the case”, she noted. She firmly believes that banking union will improve the situation. She went on to stress the importance of bearing in mind the specific natures of the principal financial systems.
Following the hearing, the parliamentary committee will adopt a draft resolution on Thursday 5 December, which will be put to the vote of the European Parliament at its December plenary. (MB/transl.fl)