Home » Video
Category Archives: Video
Daniele Nouy confirms SSM is watching Brexit business competition – Hayes
In response to a question from Brian Hayes MEP, the Chair of the ECB’s Single Supervisory Mechanism Daniele Nouy confirmed that the SSM is watching closely the competition for attracting business as a result of Brexit.
Mr. Hayes said:
“It is reassuring to know that the SSM is closely watching the hunt for business arising out of Brexit. If it is the case that financial institutions are being offered the incentives of a light regulatory regime in certain locations, we need the Eurozone watchdog to take a tough stance against this.
“A regulatory race to the bottom is in nobody’s interest. There needs to be absolute consistency of regulatory approach and a level playing field when it comes to banks’ capital requirements and how their internal models are treated.
“Minister Murphy was absolutely right to flag this issue. Two EU supervisory authorities, ESMA and EIOPA, have also raised concerns about regulatory arbitrage as a result of Brexit. The Central Bank of Ireland has been clear that banks cannot simply move to Dublin just to set up brass plate operations so they can passport financial services into the EU. Unfortunately, we are not seeing a similar approach from some other regulators whose number one priority seems to be attracting jobs and new tax revenue.
“Ms. Nouy said that there are loopholes that can allow banks to be given lighter regulatory treatment based on their location. Some locations may allow a financial institution to be treated as broker-dealer firm, which is effectively a light version of a bank but is not supervised as a bank.
“Ms. Nouy also warned that subsidiaries or branches can be set up in the Eurozone that perform a large proportion of their ‘parent’ bank’s capital market operations. The important thing is that these subsidiaries are not empty shells and that they are staffed properly and have risk management functions and internal control functions. The concern is that some locations are allowing for this empty shell approach in the search for their piece of the Brexit pie.
“What is really needed is a proper common approach among regulators across the EU for the authorisation of new firms. This could avoid loopholes and ensure a level playing field when it comes to business competition from Brexit. There are serious systemic risks at play here.
“In Ireland we know all too well about how light regulatory regimes can come crashing down. If we see such a regulatory approach in other Eurozone countries, we have a responsibility to raise these concerns.”
During the February Plenary of the European Parliament in Strasbourg I spoke about the Greek Economy and the Eurozone. I also particiapted in a debate on the future of the EU.
You can watch my contributions below:
On Thursday 12th January I visited the BT Young Scientist and Technology Exhibition in the RDS. I really enjoyed viewing the various projects and meeting with students from across Ireland. Well done to all involved.
WIFi4EU is a new initiative that aims to provide free high quality wifi access in towns and villages across the EU by 2020. The initial role out is expecting to begin in Summer 2017. I want to see the 4 Dublin Local Authorities take advantage of this initiative which will be a great benefit to Dublin communities.
Brian Hayes MEP speaks in the European Parliament about the EIB’s activities in terms of driving the jobs, growth and investment strategy of the EU. In Ireland since the crisis we have seen a major improvement in terms of EIB funding for projects such as the Luas connection.
I have continuously argued that the European Commission should bring in rules that make it easier for mortgage holders to switch mortgages on a cross-border basis. We are in a single market. We have a European Central Bank which sets the main interest rate for banks. There is no reason why a mortgage holder in Ireland should not be able to switch their mortgage to avail of a lower rate.
We need to look at what the Italians have done on switching. By shopping around and making it easier to switch – it will bring better rates for mortgage holders and more competition. Switching should be a consumer right.
On June 23rd the UK will vote to remain or leave the EU. A decision to leave will be a profoundly disruptive economic and political event – for the EU, for Britain and for Ireland. We urgently need to prepare for that outcome.