EU to beef up financial supervision

Article reports that European finance ministries, central banks and financial supervisory authorities were set to co-operate more closely to avert cross-border financial crises under an agreement adopted on the 4 April 2008.

At an informal ECOFON Council, Brdo (Slovenia), 4-5 April 2008 EU Finance Ministers and Central Bank Governors discussed financial stability in the European Union - financial sector supervision, crisis management mechanisms and current trends on international capital markets. The ministers and central bank governors adopted an amendment to the 2005 Agreement which contained general principles, practical guidelines for crisis management and an analytical framework for preparing responses.

Separately, the European Central Bank expressed concern that warnings about threats to EU financial systems might not be passed on fast enough, highlighting unease at current regulatory arrangements.

European Central Bank: Speech, 4.4.08: Financial stability and monetary policy: Challenges in the current turmoil http://www.ecb.int/press/key/date/2008/html/sp080404.en.html

Slovenia: EU Presidency: Informal ECOFON Council, Brdo (Slovenia), 4-5 April 2008: Memorandum of Understanding on co-operation between the Financial Supervisory Authorities, Central Banks and Finance Ministries of the European Union on cross-border financial stability. http://www.eu2008.si/en/News_and_Documents/Press_Releases/April/0404ECOFIN_Memorandum.html

Slovenia: EU Presidency: Website: Informal ECOFIN Council, Brdo (Slovenia), 4-5 April 2008 http://www.eu2008.si/en/Meetings_Calendar/Dates/April/0404_ECOFIN.html

United Kingdom: HM Treasury: Financial services supervision: UK Chancellor´s 3 March letter to Ecofin colleagues covering ongoing supervision, crisis management, and resolution, 3.3.08 http://www.hm-treasury.gov.uk/media/3/D/ukchxletter_ecofin030308.pdf

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