Meeting of the Committee on Economic and Monetary Affairs&nbsp;(ECON) with Dani&egrave;le NOUY, Chair of the Supervisory Board of the ECB, in the EP in Brussels.

Brussels

public hearing

Committee on Economic and Monetary Affairs

financial supervision (T)

NOUY, Danièle (FR)

Public Hearing with Danièle NOUY, Chair of the Supervisory Board of the ECB: extracts from the meeting

Interior, arrival of Ms NOUY, Chair of the Supervisory Board of the ECB, (3 shots)

SOUNDBITE (English), Dani&#232;le NOUY, Chair of the European Supervisory Board, The Banking Union while yet not completed provides good conditions for banks to capitalise opportunities for cross-border merger acquisitions. This development needs to be driven by the market, so far we have not seen significant consolidation.

SOUNDBITE (English), Dani&#232;le NOUY, Chair of the European Supervisory Board, (On non-performing loans) The key policy messages in the guidance is that the high level of NPL should be addressed by relevant banks as matter of priority in a comprehensive manner by focusing on their internal governance, by setting their all ambitious but realistic targets. Wait and see approaches as we have often seen them in the past cannot continue.

SOUNDBITE (English), Dani&#232;le NOUY, Chair of the European Supervisory Board, Some banks will need to move faster to address their NPL problems and work intensively in putting in place credible properly resourced plans to tackle this issue. The ECB will review benchmark on the last part of the supervisory process as whether certain banks have reacted appropriately.

SOUNDBITE (English), Dani&#232;le NOUY, Chair of the European Supervisory Board, (On risk reduction and the proposal of the COM) We think that the European Commission proposal is a step in the right direction as a substantial potential for reducing risk in the banking sector, therefore it is important in moving quickly the legislative package. We welcome in particular the provisions that will facilitate a closer prudential supervision of financial leading companies and on 3rd country institutions located in the EU. Also some modifications of this will be needed to close possible loopholes.

SOUNDBITE (English), Dani&#232;le NOUY, Chair of the European Supervisory Board, We would like to see more progress towards reducing unwarranted national options on discretion in order to achieve a truly Single road book which is the necessary foundation for our Banking Union.

SOUNDBITE (French), Dani&#232;le NOUY, Chair of the European Supervisory Board, (Answer to a question of MEP BERES, S&amp;D, FR) Finally we have a veritable system as a request of the G20 legislator and of course we have to do what has to be done. At the moment we talk about this stock of non-performing exposures, but we don&rsquo;t want new ones to be created in the future, so provisions need to be created properly and regularly. We are in favour of a transition phases, but we do want it to apply as soon as possible and the accounting treaty should be at 2018, at the same time as the accounting standards. Of course you need an adaptation period but there would be a little shock in the 1st of January 2018, 2019, 2020, whatever the Commission decides and we need to apply it. Dealing with the legacy assets is in the same way we were dealing with non-performing exposure, well, for the future there is no other solution, we simply have to do things properly.