It is envisaged that the consolidated supervisor as defined in the Banking Directive will carry out supplementary supervision of an institution through the supervisory authorities of the bank’s country of domicile in cooperation with the supervisory authorities of the host countries. The nature and scope of this cooperation are defined in the “home/host guidelines” of the level 3 committee CEBS.
This expert committee was established under the Lamfalussy framework and is designed to provide for a convergent application of European banking supervisory legislation among other things. The “home/host guidelines“ also describe the “supervisory colleges” in which the participating supervisory authorities responsible for a bank organise themselves. This facilitates the exchange of information and the coordination of supervision.