Aiming at both enhancing the solidity of the European banking system and restoring confidence in it, the Regulation on the Single Supervisory Mechanism (SSM) was adopted on 15th October 2013, providing that from 4th November 2014 the supervision of the entire euro area banking sector will be carried out by the ECB. The ECB will directly supervise up to 130 institutions and indirectly supervise smaller institutions through the collaboration with national competent authorities. In order to cover the expenditures it will incur in relation to this new role, the ECB shall levy an annual supervisory fee on all the supervised institutions. The draft ECB Regulation fixes the methodology for:
- determining the total amount of the annual supervisory fee
- calculating the amount to be paid by each supervised bank or banking group
- collecting the annual supervisory fee.
The public consultation on the draft ECB Regulation on supervisory fees started on 27th May 2014 and will end on 11th July 2014.
On the ECB’s website, in the “Banking Supervision” section, are published:
- the consultation documents (i.e. the text of the draft ECB Regulation, an explanatory report, a Q&A note);
- information on registering for the public hearing on the consultation documents which will take place in the ECB’s premises in Frankfurt on 24th June 2014, and, subsequently, a webcast of such hearing;
- information on how to submit a comment on the consultation documents.
After closure of the consultation, the ECB will publish the comments received, as well as an evaluation and its responses.
The ECB Regulation on supervisory fees will come into force before the ECB starts its functions as the single euro area banking supervisor on 4th November 2014.
For any further queries in relation to the Public consultation on the draft ECB Regulation on supervisory fees, kindly contact us here.