Ministers agree on single banking supervisory mechanism

Following a 14-hour meeting lasting till the early hours of this morning, finance ministers managed to agree on a general approach which will see the establishment of a single supervisory mechanism.

The agreement means that the deadline set by the heads of government to have agreement on the legislation by the end of this year, will be met. 

The special meeting of the Economic and Financial Affairs Council (ECOFIN) in Brussels was attended by the Minister of Finance, the Economy and Investment, Tonio Fenech. He was accompanied by Malta's Permanent Representative to the European Union, Ambassador Marlene Bonnici, and the Permanent Secretary in the Ministry of Finance, the Economy and Investment, Alfred Camilleri.

The meeting focused on the proposal for establishing a Single Supervisory Mechanism (SSM) which consists of two proposed regulations: one would give certain supervisory tasks to the European Central Bank (ECB), while the other would modify the mandate of the European Banking Authority (EBA). 

Following a series of bilateral meetings with the Cypriot Presidency, the Commission and the European Central Bank, Minister Fenech managed to ensure that small banks will not be subject to ECB supervision through a Malta proposal in the text which foresees that banks with a total value of assets below €5 billion will remain under national supervision. 

The meeting discussed voting modalities and here too it has been ensured that the proposal retains the principle that the Supervisory Board within the ECB will operate on a one member one vote principle.

Later on today Prime Minister Lawrence Gonzi will attend the European Council in Brussels which will also focus on Economic and Monetary Union while Minister Tonio Fenech will also remain in Brussels to attend a meeting of the Eurogroup.