Basel II and compliance certification in the European Union
In view of Basel II in the European Union (EU) is important for the unusual way the functioning of the European Union to understand.
Basel II is a proven method. This is an agreement, no law. A general framework, there are many levels of freedom, the national supervisory authorities. The Basel Committee has no supranational authority of formal control, and the conclusions have no legal force.
Basel II will be implemented in the EU through the capital Requirements Directive (CRD), which is binding on all EU Member States. This policy makes two major changes to existing policies, implementation of Basel I were in the EU: Banking Consolidation Directive and the Capital Adequacy Directive. Financial institutions have their own regulator, which not only means to convince them of the risks, but they have the best risk management and governance practices are applied.
Managers andunderstand> professional with the introduction of Basel II in the European Union and have read:
1. The document of Basel II by the Bank for International Settlements. It is impossible to avoid these cards, it will be impossible because of the need to understand the consequences standards.
2. (In fact there are two Directives 2006/48/EC and 2006/49/EC), the Capital Requirements Directive.
Basel II is an idea, a best practice. These guidelines describe what weimplementation of Basel II in the European Union.
3. The guidelines of the Committee of European Banking Supervisors. The official interpretation of Basel II as seen through the lens of the CRD.
4. The decisions of national regulators. Basel II are many levels of freedom in each country and discretion of national experts' experience and capabilities.
5. Each bank approaches, opportunities and possibilities. We have a variety of Basel IIImplementations, even if we compare banks in the same country with the same approach.
6. The Home / Host challenges for capital allocation and supervision on a consolidated basis.
There are a lot of challenges. In Sarbanes-Oxley, there are only two different implementations: one for U.S. companies and one for foreign (non U.S.) companies. In Basel II, in 100 countries, we have 100 different implementations. Fortunately, we have fewer differences between EU countriesbecause of the Capital Requirements Directive, this great opportunity for consistency and harmonization.
But what is a European directive?
We begin with what the European Union.
The countries that are part of the EU (member states) remain independent sovereign nations but they pool their sovereignty to a strength and world influence none of them was just to win. Member States, a part of their decision to shared settingshave created, so that decisions on matters of mutual interest in certain c European level.
It is not a federation like the United States, and is not an organization for cooperation of governments such as the United Nations. The European Union is unique.
The three main decision-making institutions are:
A. European Parliament (EP), which represents the EU citizens and is directly elected by them;
Parliament has three main functions.
1. PassEuropean laws - jointly with the Council in many policy areas. The fact that the European Parliament directly elected by EU citizens will help the democratic legitimacy of European law.
2. Parliament exercises democratic control over the other EU institutions, notably the Commission. He has the power to approve or reject the appointment of Commissioners and has the right to force the entire Commission to resign.
3. The power of the purse. Parliamentwith the authority of the Council on the EU budget and can therefore influence EU spending. It takes or rejects the budget as a whole.
B. Council of the European Union, which individual member states;
The Council is the EU's main decision of the body. As the European Parliament, the Council was established by the founding treaties in the year 1950. It represents the member meetings are attended by a minister of the National UnionGovernments.
As ministers of the meeting depends on what items on the agenda. If, for example, the Environment Council of the day is the meeting of Environment Ministers from all EU countries, and will be known as the Environment Council.
EU relations with the rest of the world with the General Affairs and External Relations of the treatment. But such training is also responsible for general policyProblems to its meetings any minister or any State Government chooses.
The Council has six main tasks:
1. To pass European laws - jointly with the European Parliament in many policy areas.
2. To coordinate the economic and social policies.
3. To conclude international agreements between the EU and other countries or international organizations.
4. To approve the EU budget, along withEuropean Parliament.
5. Defining and implementing the Common Foreign and Security Policy (CFSP), based on guidelines from the European Council.
6. Coordinates cooperation between national courts and the police in criminal cases.
Most of these tasks relate to the Community framework - ie areas of action, in which national sovereignty and the decision to delegate decisions to the EU institutions agreed. This area is the "firstPillar of the European Union.
C. European Commission, representing the interests of the Union as a whole represents.
The Commission is independent of national governments. His job is to represent the interests of the EU as a whole to protect.
It makes proposals for new legislation to the European Parliament (EP) and Council.
It is also the EU executive - in other words, is responsible for implementing the decisions of Parliament andCouncil. This means that running the business, day in and day out of the European Union: implementing its policies, programs and management of funds.
As the European Parliament and the Council, the European Commission in 1950, was placed by the founding treaties of the European Union.
The co-decision procedure
The Maastricht Treaty has established and extended and amended by the Amsterdam Treaty more effective, the co-decision procedure now 43 sectors in the firstColumn (in accordance with the Treaty establishing the European Community) after the entry into force of the Treaty of Nice.
As defined in Article 251 of the EC Treaty, the co-decision procedure of the legislative process, which is the focus of decision-making community. It is based on the principle of equality, meaning that neither of the two institutions (the European Parliament and the Council) the law can exist without the consent of others to adopt means.
The "institutional triangle" policyand laws that apply to the entire EU. In principle, the Commission adopted a new law, but Parliament and the Council accepts. The Commission and Member States to contact you, and the Commission enforces.
If we are fourth point, which would at the European Court of Justice to add (often referred to simply as "the Court"). E 'in Luxembourg. Her job is that EU law is interpreted to guarantee in the same applicationin all EU countries, so that the law is equal for everyone.
It ensures, for example, that national courts do not judge differently the same problem. The Court also makes sure that the Member States and EU institutions, what the law requires. The court has the authority to settle disputes between member states, EU institutions, businesses and individuals.
In view of Basel II in the European Union (EU) is important for the unusual way the functioning of the European Union to understand.
Basel II is a proven method. This is an agreement, no law. A general framework, there are many levels of freedom, the national supervisory authorities. The Basel Committee has no supranational authority of formal control, and the conclusions have no legal force.
Basel II will be implemented in the EU through the capital Requirements Directive (CRD), which is binding on all EU Member States. This policy makes two major changes to existing policies, implementation of Basel I were in the EU: Banking Consolidation Directive and the Capital Adequacy Directive. Financial institutions have their own regulator, which not only means to convince them of the risks, but they have the best risk management and governance practices are applied.
Managers andunderstand> professional with the introduction of Basel II in the European Union and have read:
1. The document of Basel II by the Bank for International Settlements. It is impossible to avoid these cards, it will be impossible because of the need to understand the consequences standards.
2. (In fact there are two Directives 2006/48/EC and 2006/49/EC), the Capital Requirements Directive.
Basel II is an idea, a best practice. These guidelines describe what weimplementation of Basel II in the European Union.
3. The guidelines of the Committee of European Banking Supervisors. The official interpretation of Basel II as seen through the lens of the CRD.
4. The decisions of national regulators. Basel II are many levels of freedom in each country and discretion of national experts' experience and capabilities.
5. Each bank approaches, opportunities and possibilities. We have a variety of Basel IIImplementations, even if we compare banks in the same country with the same approach.
6. The Home / Host challenges for capital allocation and supervision on a consolidated basis.
There are a lot of challenges. In Sarbanes-Oxley, there are only two different implementations: one for U.S. companies and one for foreign (non U.S.) companies. In Basel II, in 100 countries, we have 100 different implementations. Fortunately, we have fewer differences between EU countriesbecause of the Capital Requirements Directive, this great opportunity for consistency and harmonization.
But what is a European directive?
We begin with what the European Union.
The countries that are part of the EU (member states) remain independent sovereign nations but they pool their sovereignty to a strength and world influence none of them was just to win. Member States, a part of their decision to shared settingshave created, so that decisions on matters of mutual interest in certain c European level.
It is not a federation like the United States, and is not an organization for cooperation of governments such as the United Nations. The European Union is unique.
The three main decision-making institutions are:
A. European Parliament (EP), which represents the EU citizens and is directly elected by them;
Parliament has three main functions.
1. PassEuropean laws - jointly with the Council in many policy areas. The fact that the European Parliament directly elected by EU citizens will help the democratic legitimacy of European law.
2. Parliament exercises democratic control over the other EU institutions, notably the Commission. He has the power to approve or reject the appointment of Commissioners and has the right to force the entire Commission to resign.
3. The power of the purse. Parliamentwith the authority of the Council on the EU budget and can therefore influence EU spending. It takes or rejects the budget as a whole.
B. Council of the European Union, which individual member states;
The Council is the EU's main decision of the body. As the European Parliament, the Council was established by the founding treaties in the year 1950. It represents the member meetings are attended by a minister of the National UnionGovernments.
As ministers of the meeting depends on what items on the agenda. If, for example, the Environment Council of the day is the meeting of Environment Ministers from all EU countries, and will be known as the Environment Council.
EU relations with the rest of the world with the General Affairs and External Relations of the treatment. But such training is also responsible for general policyProblems to its meetings any minister or any State Government chooses.
The Council has six main tasks:
1. To pass European laws - jointly with the European Parliament in many policy areas.
2. To coordinate the economic and social policies.
3. To conclude international agreements between the EU and other countries or international organizations.
4. To approve the EU budget, along withEuropean Parliament.
5. Defining and implementing the Common Foreign and Security Policy (CFSP), based on guidelines from the European Council.
6. Coordinates cooperation between national courts and the police in criminal cases.
Most of these tasks relate to the Community framework - ie areas of action, in which national sovereignty and the decision to delegate decisions to the EU institutions agreed. This area is the "firstPillar of the European Union.
C. European Commission, representing the interests of the Union as a whole represents.
The Commission is independent of national governments. His job is to represent the interests of the EU as a whole to protect.
It makes proposals for new legislation to the European Parliament (EP) and Council.
It is also the EU executive - in other words, is responsible for implementing the decisions of Parliament andCouncil. This means that running the business, day in and day out of the European Union: implementing its policies, programs and management of funds.
As the European Parliament and the Council, the European Commission in 1950, was placed by the founding treaties of the European Union.
The co-decision procedure
The Maastricht Treaty has established and extended and amended by the Amsterdam Treaty more effective, the co-decision procedure now 43 sectors in the firstColumn (in accordance with the Treaty establishing the European Community) after the entry into force of the Treaty of Nice.
As defined in Article 251 of the EC Treaty, the co-decision procedure of the legislative process, which is the focus of decision-making community. It is based on the principle of equality, meaning that neither of the two institutions (the European Parliament and the Council) the law can exist without the consent of others to adopt means.
The "institutional triangle" policyand laws that apply to the entire EU. In principle, the Commission adopted a new law, but Parliament and the Council accepts. The Commission and Member States to contact you, and the Commission enforces.
If we are fourth point, which would at the European Court of Justice to add (often referred to simply as "the Court"). E 'in Luxembourg. Her job is that EU law is interpreted to guarantee in the same applicationin all EU countries, so that the law is equal for everyone.
It ensures, for example, that national courts do not judge differently the same problem. The Court also makes sure that the Member States and EU institutions, what the law requires. The court has the authority to settle disputes between member states, EU institutions, businesses and individuals.