Home French banking sector Overview Marie-Anne Barbat-Layani at the ACPR conference: “French banks are in favour of strict supervision”  


20 june 2017

Marie-Anne Barbat-Layani at the ACPR conference: “French banks are in favour of strict supervision”

The FBF CEO participated in a round-table talk on banking supervision


Marie-Anne Barbat-Layani began by emphasising the fact that strict supervision makes banks more attractive for investors and financial players and reinforces their trust in them: "French banks are naturally favourable to this. The profession also supported the banking union and European banking supervision, which was a stabilising factor after the financial crisis".

Nevertheless, today we are seeing a fragmentation of supervisory and regulatory authorities and very little coordination between them (take for example the SSB, SRB, CRU, EBA, ESMA, ESRB, etc.), which has numerous consequences: no consolidated vision of the impact of regulations, a need for improvement in the way that the impact of prudential decisions on the financial markets is taken into account, a lack of coherence between prudential supervision and financial stability, notably concerning market liquidity, cumbersome procedures due to the fragmentation of bodies involved.

Marie-Anne Barbat-Layani continued by explaining the expectations of the banking profession vis-à-vis supervision. They include simplification, involving more rapid decision-making, the need for a consolidated view of the impact of the regulations, and incorporation of the different banking models.

She pointed out that the European supervisor must continue to work with international supervisory bodies, notably the Basel Committee, which is all too often dominated by Anglo-Saxon input. In fact, the work of the Basel Committee on the comparability of models should not invalidate all that has been done since Basel II, with real sensitivity to the risks involved.

She then stressed that a level playing field is necessary with identical rules applicable to new entrants in France and internationally. On the subject of proportionality, the French banking profession's position is clear: it is in favour of intelligent application at the level of supervision and reporting.

Finally, the last point discussed: it seems absolutely necessary that there is a clear breakdown of roles between supervision and regulation: the practice of supervision must not serve as a roundabout manner of increasing prudential requirements.

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