On June 25, 2015, Daniele NOUY, Chair of the Supervisory Board of the ECB, is at the EP in Brussels for a public hearing with the MEPs of the Committee on Economic and Monetary Affairs. Questions by Miguel URBAN CRESPO (GUE/NGL, ES), Stanislaw OZOG (ECR, PL), Elisa FERREIRA (S&amp;D, PT)&nbsp;and Georgios KYRTSOS (EPP, EL)&nbsp;and&nbsp;extracts from answers by Dani&egrave;le NOUY, Chair of the Supervisory Board of the ECB.

Brussels

KYRTSOS, Georgios (Renew, EL)

public hearing

European Central Bank

Committee on Economic and Monetary Affairs

European Supervisory Board (T)

financial supervision (T)

URBÁN CRESPO, Miguel (The Left, ES)

NOUY, Danièle (FR)

European banking union (T)

FERREIRA, Elisa (S&D, PT, EC)

OŻÓG, Stanisław (ECR, PL)

Public Hearing with Danièle NOUY, Chair of the Supervisory Board of the ECB at the Committee on Economic and Monetary Affairs: extracts

SOUNDBITE (English), Dani&#232;le NOUY, Chair of the Supervisory Board of the ECB , "The Euro area banks have continued to make progress in tackling legacy issues from the financial crisis while adapting to an evolving regulatory and operating environment.The comprehensive assessment has brought much needed transparency and showed that the banking sector is well equipped to to withstand the most plausible adverse chocks. However, at least two sizeable challenges remain. First, the Euro are banks are struggling with the relatively weak,profitability, this is mainly to to the still fragile and uneven economic recovery, as well as the low interest rate environment which puts pressure on the net interest margins."

SOUNDBITE (English), Dani&#232;le NOUY, Chair of the Supervisory Board of the ECB, "A second challenge relates to the large stock of problem assets in some banks, which adversely affects banks lending capacity. This is particularly pressing for banks exposed to a more vulnerable local economic environment."

SOUNDBITE (English), Dani&#232;le NOUY, Chair of the Supervisory Board of the ECB, "Overall, weak profitability on the large stock of problem assets continue to weigh on banks capability to simultaneously continue to build up capital buffers and provide credit to the real economy."

SOUNDBITE (English), Dani&#232;le NOUY, "In the beginning of June 2015, most of the banks had covered their capital shortfalls. And the few remaining ones are in the process of fulfilling their capital plan before the established deadline."

SOUNDBITE (English), Dani&#232;le NOUY, Chair of the Supervisory Board of the ECB, "We must all recognise that consistency in supervisory approaches would be even more effective if all SSM institutions would be subject to the same regulatory requirements. In this regard, we are far from a satisfactory situation due to significant differences in national banking regulations, within the SSM and within the EU. In fact today we have a single rule book for banks in name, but not exactly in fact."

SOUNDBITE (English), Georgios KYRTSOS (EPP, EL), "I think that the the Spanish banks are doing very well, they have let's say solved a lot of problems that they used to have in the past. On the other hand, they could be vulnerable to a Greek crisis in the sense that in Greece we have a banking crisis, we also have an economic crisis and this could turn to a confidence crisis in the Euro zone or parts of the Euro zone."

SOUNDBITE (English), Dani&#232;le NOUY, Chair of the Supervisory Board of the ECB, "When true reform, restructuration of certain banks as a results have done reasonably well, in particular regarding Spain very well, through the comprehensive assessment, so ther is absolutely no reason to believe that, also taking  into consideration that they are now supervised by the SSM within the banking union,  would suffer from possible second round effects from the Greek crisis."

SOUNDBITE (English), Elisa FERREIRA (S&amp;D, PT), "What is your philosophy when you use these time frames, when you use also the national options, so all this transition,what is your philosophy, what is your concern, how do you interpret these delays, these necessary delays into getting a common, level playing field in terms of supervision?"

SOUNDBITE (English), Dani&#232;le NOUY, Chair of the Supervisory Board of the ECB , "We need to have harmonised regulation to deliver harmonised supervision, that's for sure."

SOUNDBITE (Polish), Stanis&#322;aw O&#379;&#211;G (ECR, PL), "What is the division of competences between the ECB and the national supervision agencies on the other hand; Could yu explain this in some detail, thank you."

SOUNDBITE (English), Dani&#232;le NOUY, Chair of the Supervisory Board of the ECB , "Certain powers, certain competences are quite clearly in the hands of the SSM, SSM means both ECB or national supervisors, like for example defining the capital requirement, the SREP (Supervisory Review and Evaluation Process). Others are clearly still in the territory of national supervisors like the money laundering, like consumer protection for example."

SOUNDBITE (Spanish), Miguel URB&#193;N CRESPO (GUE/NGL, ES), "If the Greek state collapses, so will the greek banking system. So therefore it is a little bit strange that you are pushing the Greek banking system and that you are making it even more difficult for the Greek government from a liquidity point of view. I don't think this makes sense if you aim is to ensure that Greek banks don't go bankrupt. Thank you."

SOUNDBITE (English), Dani&#232;le NOUY, Chair of the Supervisory Board of the ECB , "I would like to say that we have excellent cooperation with the Greek supervisors, which are members of our supervisory board. They are very good supervisors, they have done an excellent job in reorganising, restructuring the Greek banks."