Against this background, the respect of the subsidiarity principle in supervisory matters necessitates enhanced co-operation between national authorities. The ECB has repeatedly stressed that in the banking sector close and effective co-operation between central banks and supervisory authorities is crucial for the promotion of financial stability, a point that I am glad to see strongly backed also in recent resolutions of the European Parliament.
The ECB has also emphasised that technical authorities need to be represented in regulatory committees and that any new arrangements for financial stability should draw on the technical expertise at central banks and supervisory agencies. All these points are reflected in the proposals endorsed by the ECOFIN Council in October.