September 13, 2012—The Steering
Committee of the Vienna 2 Initiative* organized a high-level workshop on
the topic of bank supervision, resolution and banking union with particular
regard to emerging Europe in London on 12 September 2012.
The workshop discussed supervisory cooperation between home and host supervisors
and resolution procedures during normal times and periods of crisis. Resolution
issues relating to the banking union framework were also discussed.
Held on the same day as the European Commission’s release of its proposals
for the European single supervisory mechanism - as a first element of the
banking union - the workshop had a preliminary discussion on the implications
of these proposals for emerging Europe. Participants highlighted the need
for consistent progress on resolution and deposit guarantees. There was
also a discussion of the implications for emerging Europe of options for
the banking union.
Participants in the meeting included senior policy-makers from central
banks, supervisory authorities and ministries of finance from home and
host countries, representatives of major cross-border banks, European institutions,
as well as international financial institutions.
The Vienna 2 Initiative plans to present reports on bank supervision, bank
resolution and banking union as they affect emerging Europe to various
European Union policy-making fora in the near future.
* BACKGROUND ON THE VIENNA INITIATIVE
The Vienna Initiative was established at the height of the global financial
crisis of 2008/09 as a private-public sector platform to secure adequate
capital and liquidity support by Western banking groups for their affiliates
in CESEE. The initiative was re-launched as “Vienna 2” in January 2012
in response to renewed risks for the region from the eurozone crisis. Its
focus is now on fostering home and host authority coordination in support
of stable cross-border banking and guarding against disorderly deleveraging.
Western banking groups continue to play an important role in the Initiative,
both by supporting the coordination efforts and doing their own part to
avoid disorderly deleveraging.