Gertrude Tumpel-Gugerell: What is the role of central banks for banking supervision? Introductory remarks by Ms Gertrude Tumpel-Gugerell, Member of the Executive Board of the European Central Bank, at the panel discussion at the ZEIT Konferenz “Finanzplatz: Menschen und Entscheidungen”, Frankfurt am Main, 8 September 2008. *  *  *  The ECB has already expressed its position on the possible role of central bank in financial supervision in 2001. This was triggered in the context in which some countries were in the process of transferring the supervisory function from the central bank to independent authorities. The main position at that time, which remains valid today, is that there is no optimal arrangement for the organisation of supervision at the national level. All organisational models – sectoral supervision, supervision by objectives, supervision in a single authority – can in principle work well or fail depending on circumstances. However, regardless of the model, it is important that there exists a very close and smooth interplay between the central banking and the supervisory function. Does the experience of the turmoil bring new elements in this domain? This is certainly the case. In general the turmoil has clearly confirmed the importance of a strong interaction between central banks and banking supervisors as also confirmed by the specific recommendation of the Financial Stability Forum in this field. As a new element the turmoil has somewhat contributed to specifying the relevant areas in which this interplay should be reinforced.
So this is also about the HKMA changing as a regulator; modernising the fight against money laundering requires change and regulatory support, a more flexible approach, and we are committed to further developing the approach that has been started through our various initiatives. 17. So my message is simple. The purpose of engaging every one of you in these two days is to enable and encourage banks, whatever stage you are at in your Regtech evolution, to consider, test and responsibly implement technology-enabled innovations in the fight against financial crime, facilitated by, as well as contributing to, an effective AML/CFT regime in Hong Kong. 18. On our part we are going to be using a number of tools, including continued engagement through forums like this, to follow up and see that positive changes are happening in banks and the wider eco-system. The HKMA and the banking sector will continue to contribute to AML/CFT efforts in Hong Kong, and through our supervisory processes, regulations and guidance, we support banks’ efforts to innovate and fully grasp the benefits of RegTech. We welcome your feedback. 19. Please enjoy today, I know the team have put a lot of thought into making it interesting and thought provoking. 20. Let us seize this opportunity to develop a stronger collective vision of what each of us can contribute towards a more effective response to money laundering. 2/2  BIS central bankers' speeches