Parliamentary Finance Committee briefed on next year’s supervision priorities
At today’s meeting, the management board of the Financial Supervision Authority represented by the chairman Kilvar Kessler and management board members Andres Kurgpõld and Andre Nõmm gave members of the Finance Committee an overview of the next year’s key activity areas and heard the Finance Committee’s opinions on the matter.
From 4 November on, the Financial Supervision Authority is a part of the Single Supervisory Mechanism (SSM) of Eurozone banks, where the European Central Bank (ECB) will begin exercising direct supervision over of 120 key banks in the Eurozone. Of the banks operating in Estonia, Swedbank and SEB Bank are directly in the remit of the ECB’s SSM.
“In connection with the launch of the supervisory system, one of the priorities of the next year is to integrate our banks’ capital supervision related activities with the supervision process of SSM,” said the chairman of the management board of the Financial Supervision Authority, Kilvar Kessler.
Besides the Single Supervisory Mechanism, the pillars of banking union being established in the European Union also include a set of rules for capital requirements and crises resolution (Single Rulebook): EU regulations, directives and European Banking Supervision guidelines. Another common crisis resolution institution is the SRM (Single Resolution Mechanism), which unites resolution authorities in the Eurozone. Estonia thus far lacks such a national resolution authority; the current plan is for the Financial Supervision Authority to become the resolution authority.
“Based on the above, we have to implement the resolution function. Next year it will remain important to check whether the capacity for implementation of money laundering prevention and international sanctions meets the established requirements,” said Kilvar Kessler, chairman of the board of the Financial Supervision Authority.
Starting next year, the plan is for the Financial Supervision Authority to extend supervision not only to banks but also to creditors if they are required by law to seek an activity licence from the Financial Supervision Authority. This will require readiness on the part of the Financial Supervision Authority to organise consumer credit market supervision.