Text proposed by the Commission Amendments proposed by the ECB (1)

Amendment 1

Recital 5 of the proposed regulation

Recital 5 ‘In its Communication entitled “European Financial Supervision” […] In line with the views of the Commission, it concluded, inter alia, that the ECB “should provide analytical, statistical, administrative and logistical support to the ESRB, also drawing on technical advice from national Central Banks and supervisors”.’ Recital 5 ‘In its Communication entitled “European Financial Supervision” […] In line with the views of the Commission, it concluded, inter alia, that the ECB “should provide analytical, statistical, administrative and logistical support to the ESRB, also drawing on technical advice from national C central B banks and supervisors”. The ECB has decided that it stands ready to ensure the Secretariat of the ESRB and to support the ESRB. The support provided to the ESRB by the ECB as well as the tasks conferred upon the ESRB must be without prejudice to the principle of the independence of the ECB in the performance of its tasks pursuant to the Treaty.’

Explanation: The ECB’s Governing Council has decided that the ECB stands ready to ensure the Secretariat of the ESRB and to support the ESRB and considers it appropriate to mention this in recital 5 of the proposed regulation. The last sentence of recital 5 of the proposed regulation clarifies that the ECB’s performance of its tasks will not be hampered by its support of the ESRB, nor by the tasks of the ESRB itself since, unlike the ESRB, the ECB is established by the Treaty. This is particularly important in view of the principle of central bank independence.

Amendment 2

Article 3(1) of the proposed regulation

Article 3 ‘1. The ESRB shall be responsible for the macro-prudential oversight of the financial system within the Community in order to prevent or mitigate systemic risks within the financial system, so as to avoid episodes of widespread financial distress, contribute to a smooth functioning of the Internal Market and ensure a sustainable contribution of the financial sector to economic growth.’ Article 3 ‘1. The ESRB shall be responsible for the macro-prudential oversight of the financial system within the Community in order to prevent or mitigate systemic risks within the financial system, so as to avoid episodes of widespread financial distress, and contribute to a the smooth functioning of the Internal Market. and ensure a sustainable contribution of the financial sector to economic growth .’

Explanation: The ECB is of the view that ensuring a sustainable contribution to economic growth is not the motivation behind macro-prudential oversight. Therefore, the reference to this notion should be withdrawn from the above article.

Amendment 3

Article 4(1) of the proposed regulation

Article 4 ‘1. The ESRB shall have a General Board, a Steering Committee and a Secretariat.’ Article 4 ‘1. The ESRB shall have a General Board, a Steering Committee, and a Secretariat and an Advisory Technical Committee.’

Explanation: The proposed regulation and decision need to put in place the key institutional aspects of the ESRB, including the Advisory Technical Committee (ATC). Both the proposed regulation and the proposed decision point out the leading role of the ECB and of national central banks in macro-prudential oversight (2). This article of the proposed regulation should be amended to clarify that the ATC is part of the organisational structure of the ESRB (see also below Amendments 5 and 7).

Amendment 4

Article 4(4) of the proposed regulation

Article 4 ‘4. The Secretariat shall provide analytical, statistical, administrative and logistical support to the ESRB under the direction of the Chair of the General Board in accordance with Council Decision XXXX/EC/2009.’ Article 4 ‘4. I in accordance with Council Decision XXXX/EC/2009 entrusting the ECB with specific tasks concerning the functioning of the ESRB, T the Secretariat will be ensured by the ECB, which will shall provide analytical, statistical, administrative and logistical support to the ESRB, also drawing on technical advice from national central banks and supervisors under the direction of the Chair of the General Board.’

Explanation: The amendment is necessary to bring the proposed regulation in line with the Ecofin Council conclusions of 9 June 2009 and the proposed decision. Without it, the role of the ECB in supporting the ESRB would be omitted from the text of the proposed regulation. This would not be in line with past declarations and decisions, including in particular: — the de Larosière report that stated ‘within the EU, the ECB, as the heart of the ESCB, is uniquely placed for performing this task, i.e. identifying macro prudential risks’; — the Commission Communication of 27 May 2009; — the Ecofin Council conclusions of 9 June 2009 stating that ‘the ECB should provide analytical, statistical, administrative and logistical support to the ESRB, also drawing on technical advice from national central banks and supervisors’; and — approval of the above conclusions by the European Council of 18 and 19 June 2009.

Amendment 5

Article 4(5) of the proposed regulation

Article 4 ‘5. The ESRB shall be supported by the Advisory Technical Committee referred to in Article 12, which shall provide advice and assistance on issues relevant to the work of the ESRB, where requested.’ Article 4 ‘5. The ESRB shall be supported by the Advisory Technical Committee referred to in Article 12, which shall provide advice and assistance on issues relevant to the work of the ESRB., where requested.’

Explanation: This article of the proposed regulation should be amended to clarify that the ATC assists the ESRB on a permanent basis. The rules of procedure of the ESRB will include the provisions applicable to the advisory role of the ATC (see also Amendments 3 and 7 relating to the ATC).

Amendment 6

Article 7 of the proposed regulation

‘Article 7 Impartiality 1. When participating in the activities of the General Board and of the Steering Committee or when conducting any other activity relating to the ESRB, the Members of the ESRB shall perform their duties impartially and shall neither seek nor take instructions from Member States. 2. Member States shall not seek to influence the members of the ESRB in the performance of their ESRB tasks.’ ‘Article 7 Impartiality and independence 1. When participating in the activities of the General Board and of the Steering Committee or when conducting any other activity relating to the ESRB, the Members of the ESRB shall perform their duties impartially and solely in the interest of the Community as a whole. They shall neither seek nor take instructions from Member States, Community institutions or any other public or private body. 2. Member States, Community institutions or any other public or private body shall not seek to influence the members of the ESRB in the performance of their ESRB tasks.’

Explanation: This article should be amended to ensure the independence of the members of the ESRB from interference by other Community bodies or any other body. This is without prejudice to the exercise by the ECB of the supporting tasks entrusted to the ECB for the benefit of the ESRB, and which cannot be qualified as instructions.

Amendment 7

Article 12(3) of the proposed regulation

Article 12 ‘3. The Committee shall perform the tasks referred to in Article 4(5) at the request of the chair of the General Board.’ Article 12 ‘3. The Committee shall perform the tasks referred to in Article 4(5) at the request of the Chair of the General Board.’

Explanation: The purpose of the amendment is to clarify that the ATC assists the ESRB on a permanent basis, not only when requested, in accordance with the ESRB rules of procedure (see also Amendments 3 and 5 relating to the ATC).

Amendment 8

Article 13 of the proposed regulation

‘Article 13 In performing its tasks, the ESRB shall seek, where appropriate, the advice of relevant private sector stakeholders.’ ‘Article 13 In performing its tasks, the ESRB shall seek, where appropriate, the advice views of relevant private sector stakeholders.’

Explanation: The proposed terminology better reflects the nature of the role of private sector stakeholders.

Amendment 9

Recital 8 of the proposed decision

Recital 8 ‘The Council concluded on 9 June 2009 that the ECB should provide analytical, statistical, administrative and logistical support to the ESRB. The option foreseen by the Treaty to confer specific tasks concerning policies relating to prudential supervision upon the ECB should therefore be exercised, by conferring on the ECB the task of ensuring the Secretariat to the ESRB.’ Recital 8 ‘The Council concluded on 9 June 2009 that the ECB should provide analytical, statistical, administrative and logistical support to the ESRB. The option foreseen by the Treaty to confer specific tasks concerning policies relating to prudential supervision upon the ECB should therefore be exercised, by conferring on the ECB the task of ensuring the Secretariat to the ESRB. The support provided to the ESRB by the ECB as well as the tasks conferred upon the ESRB must be without prejudice to the principle of the independence of the ECB in the performance of its tasks pursuant to the Treaty.’

Explanation: The amendment to the proposed recital clarifies that the ECB’s performance of its tasks will not be hampered by its support of the ESRB, nor by the tasks of the ESRB itself since, unlike the ESRB, the ECB is established by the Treaty. This is particularly important in view of the principle of independence.

Amendment 10

New recital 8a of the proposed decision

‘No current text’ Recital 8a ‘(8a) The macro-prudential supervisory tasks of the ESRB aim at preventing or at least mitigating systemic risks within the financial system. While the ESRB is not in charge of supervising specific individual undertakings providing financial services, the oversight tasks of the ESRB and the support provided by the ECB are related to the financial system as a whole, with an emphasis on interlinkages across the various sectors of the financial system.’

Explanation: Taking into account the nature and objectives of the macro-prudential oversight functions attributed to the ESRB and of the support provided by the ECB to the ESRB, the new proposed recital clarifies, in the context of the application of Article 105(6) of the Treaty, that macro-prudential supervision covers the financial system as a whole.

Amendment 11

Article 2 of the proposed decision

Article 2 ‘The European Central Bank shall ensure the Secretariat and shall therefore provide analytical, statistical, logistical and administrative support to the ESRB. […] (b) In accordance with Article 5 of this Decision, the collection and processing of information, including statistical information, on behalf and for the benefit of the fulfilment of the ESRB tasks;’ Article 2 ‘The European Central Bank shall ensure the Secretariat and shall therefore provide analytical, statistical, logistical and administrative support to the ESRB. […] (b) In accordance with Article 5 of the Statute of the European System of Central Banks and of the European Central Bank and Article 5 of this Decision, the collection and processing of information, including statistical information, on behalf and for the benefit of the fulfilment of the ESRB tasks;’

Explanation: The deletion of the term ‘therefore’ brings the text in line with the Ecofin Council conclusions of 9 June 2009. Article 2(b) of the proposed decision relates to the statistical support that the ECB is called upon to provide to the ESRB. The amendment proposed will enable the Secretariat to obtain confidential data collected by the ECB/ESCB on behalf and for the benefit of the ESRB.

Amendment 12

Article 4 of the proposed decision

‘Article 4 Management […]’ ‘Article 4 Management Functioning of the Secretariat […]’

Explanation: The proposed title reflects more accurately the content of Article 4 of the proposed decision, and uses terminology that better respects the internal administrative competences of the ECB.

Amendment 13

Article 4(2) of the proposed decision

Article 4 ‘2. The Head of the Secretariat or its representative shall attend the General Board and the Steering Committee meetings of the ESRB.’ Article 4 ‘2. The Head of the Secretariat or its representative shall attend the General Board, and the Steering Committee and the Advisory Technical Committee meetings of the ESRB.’