ECB Annual Report on supervisory activities

EU already take place under the terms of CRD IV, MoUs with European national
competent authorities lay down additional details on cooperation.
In December 2016 the <strong>ECB</strong> concluded an MoU with the supervisory authorities of
Sweden, Norway, Denmark and Finland with regard to supervising branches that are
considered significant under CRD IV. The MoU covers matters related to ongoing
supervision, such as participation in supervisory colleges, the exchange of
information and on-site inspections. 32
The <strong>ECB</strong> is also in discussion with EU national market authorities regarding the
signature of an MoU based on the template previously devised by the <strong>ECB</strong> in
cooperation with ESMA. Such an MoU has already been signed with one authority.
Negotiations are under way with two other national market authorities.
The <strong>ECB</strong> has also entered into MoUs with both the EBA and ESMA.
Cooperation with third country authorities
Over time, MoUs between NCAs
and third countries will be replaced
with MoUs between the <strong>ECB</strong> and
third countries
Where feasible, the <strong>ECB</strong> joined the existing MoUs that NCAs from euro area
countries had signed with supervisory authorities from third countries before the
SSM was established, so as to facilitate ongoing supervision. Over time, these MoUs
will be progressively replaced with the <strong>ECB</strong>’s own MoUs with the third country
authorities.
Figure 6
Four areas of supervision covered in the MoUs under negotiation by the <strong>ECB</strong>
Information exchange
On-site inspections
(with internal model
investigations)
Cooperation in
ongoing supervision
Cooperation in
emergency situations
Sets the principles for
information exchange, for
example, when information can
be shared, format of
exchanges, etc.
Authorities constantly
cooperate and exchange
information on supervised
entities, for example, through
joint meetings.
Cooperation between
authorities regarding on-site
inspections (OSIs), such as
sharing OSI plans, conducting
joint OSIs, sharing OSI
findings, etc.
Authorities notify each other
immediately in the event of a
crisis and provide a
coordinated response to a
crisis situation.
32
This MoU is designed to facilitate cooperation on significant branches between <strong>ECB</strong> Banking
Supervision and the Nordic authorities (and for the latter among themselves), both inside and outside
the euro area. Therefore, the MoU not only covers euro area entities but also a broader range of
entities under the supervision of these Nordic authorities. Furthermore, in addition to banking
supervision tasks, the MoU also covers consumer protection, payment services and systems as well as
anti-money laundering. Hence, the MoU’s scope goes beyond the tasks of <strong>ECB</strong> Banking Supervision.
However, the degree of cooperation between the signatory authorities remains subject to EU law.
Consequently, <strong>ECB</strong> Banking Supervision will participate in the MoU only with regard to its supervisory
tasks.
<strong>ECB</strong> <strong>Annual</strong> <strong>Report</strong> on supervisory activities 2016 − The SSM as part of European and
global supervisory architecture 43