Question for written answer
to the Commission
Alfred Sant (S&D)
Subject: European Court of Auditors’ assessment of EU banking supervisory system
The ECB should observe a clear separation between its monetary policy and supervision functions, overseen by a Supervisory Board. According to the ECA report on the EU Banking Supervisory system:
1) Within the ECB, the SSM Supervisory Board does not exercise control over the supervisory budget or human resources, raising concerns about the independence of the two areas of the ECB’s work, as does the fact that some ECB departments provide services to both functions without clear rules and reporting lines that would minimise possible conflicts of objectives.
2) The ECB’s efforts to ensure transparency and accountability for the SSM towards the European Parliament and the public are potentially weakened by the lack of a proper mechanism for assessing and reporting on supervisory effectiveness.
3) The SSM’s work of supervising the eurozone’s most important banks is heavily dependent on staff appointed by national authorities. Thus the ECB has insufficient control over the composition and skills of supervision and inspection teams.
How does the ECB intend to
1. solve the above concerns underlined by the Auditors,
2. improve efficiency by further streamlining the decision-making process, and
3. give the Chair and Vice-Chair of the Supervisory Board stronger involvement in the budgetary process?