ECB Annual Report on supervisory activities

In the course of 2016 the <strong>ECB</strong> published on its website 34 replies to questions from
MEPs on supervisory matters. The letters explained the legal framework as well as
the <strong>ECB</strong>’s policies on a broad range of supervisory topics, such as the 2016 EBA
stress test exercise, the <strong>ECB</strong>’s supervisory actions, the SREP and non-performing
loans.
Chart 7
Replies to questions from Members of the European
Parliament increased in 2016
50
40
34
30
26
Moreover, in line with the Interinstitutional Agreement,
the <strong>ECB</strong> transmitted the records of proceedings of its
Supervisory Board meetings to the European
Parliament. In 2016 a new format was introduced to
further improve the records of proceedings, which now
provide the European Parliament with better information
on the issues that were discussed during the
Supervisory Board meetings. The European Parliament
expressed its satisfaction with this new format.
20
10
0
10
1
2013 2014 2015 2016
With regard to the EU Council, in 2016 the Chair of the
Supervisory Board attended two meetings of the
Eurogroup in banking union composition: on 22 April
the Chair presented the 2015 <strong>ECB</strong> <strong>Annual</strong> <strong>Report</strong> on
supervisory activities, and on 9 November she attended
an exchange of views on topics including the EBA
stress tests, the 2016 SREP, non-performing loans and
the harmonisation of the options and national discretions in the CRR/CRD IV.
As part of the reporting requirements under the SSM Regulation, representatives of
the <strong>ECB</strong> involved in banking supervision took part in exchanges of views with
national parliaments.
Interaction with the European Court of Auditors
As part of the European Court of Auditors’ (ECA) audit of the “operational efficiency
of the management of the <strong>ECB</strong>”, conducted under Article 20(7) of the SSM
Regulation, <strong>ECB</strong> Banking Supervision had extensive exchanges with the ECA. The
ECA published its first special report on the Single Supervisory Mechanism, “Good
start but further improvements needed”, in November 2016. The ECA focused on the
operational efficiency of the management of the <strong>ECB</strong> in the area of banking
supervision and acknowledged the <strong>ECB</strong>’s achievements in setting up European
banking supervision. Nevertheless, the report contains 13 recommendations on
which the <strong>ECB</strong> gave its preliminary views in the report itself and on which it is
currently following up. The key ECA recommendations focus on four areas: (i)
governance (e.g. streamlining the supervisory decision-making process); (ii)
accountability (e.g. developing and making public a formal performance framework);
(iii) Joint Supervisory Teams (e.g. ensuring that national authorities participate fully
and proportionately in JST work); and (iv) on-site supervision (e.g. strengthening the
presence of <strong>ECB</strong> staff in on-site inspections).
<strong>ECB</strong> <strong>Annual</strong> <strong>Report</strong> on supervisory activities 2016 − Organisational set-up of <strong>ECB</strong> Banking
Supervision 52