What is CEBS?

CEBS is the Committee of European Banking Supervisors. It is the only institutional body that brings together all of the banking supervisory authorities and central banks of the 28 countries in the European Economic Area. The European Commission and European Central Bank are observers at CEBS.

What are CEBS' tasks?

CEBS is promoting convergence of banking supervisory practices and supervisory co-operation in Europe. CEBS will provide advice to the Commission on fleshing out the technical detail of European banking directives and foster common day-to-day implementation and application of Community legislation. CEBS is working to promote a common European supervisory culture and approach. CEBS will help to ensure a more level playing field in relation to the banks and investment firms including entities from other countries, through promoting consistency in supervisory practices.

What tools CEBS can use to achieve its objectives?

CEBS work is based on consensus and voluntary cooperation between national authorities. CEBS will issue guidelines and standards. Each member authority within CEBS commits to implement them within their own country. What has CEBS achieved so far? CEBS has been preparing the implementation measures of the new Capital Requirements Directive to achieve consistent implementation across the EU. CEBS has published 11 consultation papers and will publish guidelines to promote convergence of supervisory practices in Europe.

How is CEBS' work monitored?

CEBS' tasks are assigned to it by a Commission Decision, on the basis of an agreement among European finance ministers. CEBS work is monitored not only by the Commission but also by European finance ministers, European Parliament and market participants. Transparency and democratic accountability are key elements of CEBS' work.

How is CEBS conducting its work?

CEBS is required to be transparent and to consult the market participants and end-users before the outcome of its deliberations. Decisions on CEBS' actions are taken at the plenary meeting of its members. The groundwork of CEBS is done in its expert groups assisted by the Secretariat which is based in London. The staff for the Secretariat is seconded to CEBS by national authorities.

Who is paying for the running costs of CEBS?

CEBS annual budget is covered by its members on proportional basis. The budget for 2005 is 2 300 000 euros.

What is the Lamfalussy framework?

The Lamfalussy approach is a four level approach to financial markets, aimed at establishing faster and more flexible decision-making for legislation and at ensuring uniform application in Member States. It was first implemented in the securities field following the recommendations of the Committee of Wise Men chaired by Alexandre Lamfalussy (endorsed by the European Council in March 2001).

Level 1: Framework principles to be decided by legislative procedures i.e. proposal by the Commission to the Council of Ministers and the European Parliament for co-decision.
Level 2: Implementing details to be defined, proposed and decided by the Commission with the assistance of a senior Committee of representative of Member States - the European Banking Committee - based on technical advice received by CEBS.
Level 3: European supervisors working in a network to ensure consistent implementation of Level 1 and 2 acts in the Member States.
Level 4: The Commission's enforcement of Community law.