Opinion of the European Central Bank of 10 February 2000 at the request of the Austrian Ministry of Finance on a draft Federal Act to amend the Banking Act (CON/00/01)
Date: 2000-02-10
Institutions: European Central Bank
Subjects: Austria, approximation of laws, banking supervision, financial stability, national law

OPINION OF THE EUROPEAN CENTRAL BANK

of 10 February 2000 

at the request of the Austrian Ministry of Finance on a draft Federal Act to amend the 

Banking Act

(CON/00/01)

1. 

On  3 January  2000  the  European  Central  Bank  (ECB)  received  a  request  from  the  Austrian

Ministry of Finance for an ECB Opinion on a draft Federal Act to amend the Banking Act.

2. 

The  ECB’s  competence  to  deliver  an  opinion  is  based  on  Article 105 (4)  of  the  Treaty

establishing  the  European  Community  (hereinafter  referred  to  as  the  “Treaty”)  and  on

Article 2 (1),  in  particular  the  sixth  indent,  of  Council  Decision  (EC)  No. 98/415  of  29 June

1998 on the consultation of the European Central Bank by national authorities regarding draft

legislative  provisions,  as  the  draft  laws  contains  rules  applicable  to  financial  institutions  that

could materially influence the stability of financial institutions and markets. As the request for

an opinion of the ECB was not restricted to this part of the draft law, the present opinion covers

the whole draft legislative proposal. In accordance with Article 17.5, first sentence, of the Rules

of  Procedure  of  the  European  Central  Bank,  this  ECB  Opinion  has  been  adopted  by  the

Governing Council of the ECB. This ECB Opinion is based on an unofficial English translation

of the official Austrian proposal.

3. 

The  ECB  notes  that  the  draft  law  aims  at  implementing  individual  provisions  of  Directive

98/31/EC (CAD II) of the European Parliament and of the Council of 22 June 1998 amending

Council Directive 93/6/EEC on the capital adequacy of investment firms and credit institutions

(CAD), and of Directive 98/7/EC of the European Parliament and of the Council of 16 February

1998  amending  Directive  87/102/EEC  for  the  approximation  of  the  laws,  regulations  and

administrative provisions of the Member States  concerning  consumer  credit  In  addition, other
provisions of the draft law arise from the need to implement Article 4 (1) 2nd subparagraph of

Directive 94/19/EC of the European Parliament and of the Council of 30 May 1994 on deposit-
guarantee  schemes  and  Article  7  (1)  2nd  subparagraph  of  Directive  97/9/EC  of  the  European

Parliament and of the Council of 3 March 1997 on investor-compensation schemes. Lastly, the

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draft law addresses the need for improved co-operation with the banking supervisory authorities

of third countries.

4. 

The ECB welcomes the implementation of the above mentioned provisions of Community law

in Austria and has, apart from the statements below, no further comments on the draft law.

5. 

The ECB welcomes the new provisions of the draft law (Articles 42 and 46 to 50)  regarding co-

operation and exchange of information between the Ministry of Finance, as Austria’s banking

supervisory authority, and the competent supervisory authorities of third countries. In particular,

the ECB notes that the main aim is to ensure an effective consolidated supervision of banking

groups based in Austria and operating in third countries. In this sense, the ECB should like to

note  that  the  new  provisions  allow  the  supervisory  authority  to  have  an  autonomous  and

proactive  stance  towards  co-operation,  both  as  a  provider  and  requestor  of  assistance  and

information. This is appropriately subject to principles of mutual assistance, confidentiality and

professional  secrecy.  Moreover,  the  ECB  welcomes  that  the  objectives  underlying  the

provisions  of  Community  law  concerning  co-operation  and  exchange  of  information  between

supervisors  are  pursued  in  relation  to  the  competent  authorities  of  third  countries.  Lastly,  in

relation to Article 50 of the draft law and the new §77a of the Austrian Banking Act, the ECB

believes  that  a  formal  agreement  between  the  competent  supervisory  authorities  is  an

appropriate instrument to establish co-operation and information sharing arrangements. In this

regard, such type of agreements may include the possibility of cross-sector co-operation for the

benefit  of  the  purposes  of  consolidated  supervision.  Furthermore,  such  agreements  have  the

potential  to  contribute  to  the  world-wide  implementation  of  high  standards  in  the  conduct  of

supervision. Thus, their geographical scope could be extended to all jurisdictions to which there

are  significant  links.  All  in  all,  the  new  provisions  should  be  seen  as  a  step  forward  towards

reinforcing  the  current  framework  for  cross-border  supervision  in  accordance  with  the

international standards and recommendations.

6. 

The  ECB  confirms  that  it  has  no  objection  to  this  ECB  Opinion  being  made  public  by  the

competent national authorities at their discretion.

Done at Frankfurt am Main on 10 February 2000.

The President of the ECB

[signed]

Willem F. Duisenberg