International Cooperation
International Agreements nad Contracts
One of the assumptions underlying the efficient execution of supervision over the supervised entities is the cooperation and exchange of information with foreign supervisory bodies in the field of financial markets. Národná banka Slovenska acts in association with foreign supervisory bodies, in particular on the basis of bilateral agreements on mutual cooperation -so-called Memoranda of Understanding. These memoranda provide for the purposeful, effective and proactive exchange of information required for the proper execution of supervision, namely on the basis of willingness, trust and reciprocity. In addition to these bilateral memoranda of understanding in the area of banking supervision, the National Bank of Slovakia is a signatory to multilateral agreements on cooperation within the European Economic and Monetary Union, IOSCO (The International Organisation of Securities Commissions) and CESR (The Committee of European Securities Regulators). The multilateral Memorandum of Understanding of CESR provides for two basic models of cooperation between two or more competent supervisory bodies - in the form of a Common Oversight Request or Standing Request for Assistance. The Common Request is a model established on a common and coordinated execution of supervision; the Standing Request for Assistance is a model by which the appropriate supervisory body requests the assistance of another appropriate body in the execution of supervision. Národná banka Slovenska has made use of both forms. Another form of cooperation is cooperation in the form of exchange of letters (Letter of Understanding), in which both parties commit themselves to mutual cooperation and exchange of information.
European System of Financial Supervision (ESFS)
Národná banka Slovenska is also a part of the European System of Financial Supervision, which was formed on 1 January 2011 in order to ensure the oversight over the EU financial system. The main objective of the ESFS shall be to ensure that the rules applicable to the financial sector are adequately implemented to preserve financial stability and to ensure confidence in the financial system as a whole and sufficient protection for the customers of financial services. Národná banka Slovenska is a member of all four new European authorities and takes part in their decision making process:
Financial market oversight can be divided into two main areas - micro-prudential supervision, the main focus of the European Supervisory Authorities, and macro-prudential supervision, which is the competence of the ESRB.
Update: January 7, 2011