Newsletter Jun 2005: Proportionality is central to pillar 2 supervisory review

LONDON – Proportionality should be central to the supervisory oversight of European banks applying the EU’s capital adequacy rules. This is heavily emphasised in a new consultative paper * issued by the London-based Committee of European Banking Supervisors (CEBS), which promotes convergence of supervisory practice among the 25 members of the EU, and advises the European Commission on the technical aspects of financial legislation.