Fundamentals

Question 1

Definition of EU Banking union law

Answer 1

The EU banking law is the section of the union legal system that is aimed at regulating the banking sector

Question 2

Purpose of legislation

Answer 2

sound and prudent management of the banking sector, safeguard of overall stability, efficiency and competitiveness of the banking system and protecting depositors

Question 3

Concept of harmonization

Answer 3

Harmonization signifies a progessive removal of barriers by national legislators and regulatory authorities that undermine or threaten to undermine the implementation of an internal market

Question 4

Structure of the EU Law

Answer 4

Primary law: Treates; CFREU, post treaty of Lisbon 2009: TEU TFEU

Secondary Law: Regulations, Directives, Decisions

Question 5

Features of directives

Answer 5

ensure flexibility in their transposition by the member states but allow regulatory differences that can hinder the creation of a level playing field (minimum harmonization tool)

Question 6

Features of regulations

Answer 6

general application, binding in their entirety and directly applicable; ensures uniform application of EU law in such a way by implementing “maximum harmonization”

Question 7

What is the criterion governing the choice between directive and regulation?

Answer 7

Principle of proportionality: EU must act in the limit of what is necessary to achieve the agreed upon objectives. The less restrictive should be preferred, theregore directives should have preference over regulations as they leave greater flexibility to the national legislature

Question 8

Self-executive directive

Answer 8

Certain provisions of a directive may exceptionally and directly be applicable in an EU member state although the state has not yet transposed the directive or directive has been transposed imperfectly. Can occur when provisions of directive ae imperative, clear, precise and when they confer rights on individuals

Question 9

Domestic law

Answer 9

national act that transforms directive is the measure of implementing a directibe into domestic law at a state level

Question 10

Legal acts and non-legal acts

Answer 10

Legislative acts: adopted under either ordinary legislative procedure or special legislative procedures. Ordinary: joint adaptation by EU parliament and council. Special legislative procedure: exceptional procedure, examines cases where act may be adopted by the sole council affter consultation with or consend from EU parliament -> council sole legislator

Non-legislative: adopted by commission and after delegation of legislative authority to commission. Consists of delegated acts (DA) and implementing acts (IA)

Question 11

Delegated acts (DA)

Answer 11

acts of general application aimed at suplementing or amending certain non-essential parts of legislation. A aprt of legislation that authorizes the commission must define the objectives,ccontent, purpose and duration of the delegation of power as well as conditions

Question 12

Implementing acts (IA)

Answer 12

acts developed by EBA

Question 13

Lamfalussy Procedure

Answer 13

1) A legislative act, botj adopted following a commission proposal that operates with national experts established by commission and council (Level 1)
2) Delegated or implementing acts by commission, with support of the 3 EU supervisory authorities (ESAs): European Banking authority (EBA), EU insurance and occup. pensions authority (EIOPA) and EU securities market authority (ESMA)
3) Consultation and guidance (L3) by CESR, CBS, CEIOPS (all committees)
4) Enforcement (Level 4)

Question 14

List of main acts

Answer 14

1) Acts relating to establishment of the single banking market (1st, 2nd banking directives, Capital requirements directive)
2) acts relating to the capital adequacy of credit institutions an investment firms (CRD IV)
3) Acts on the deposit guarantee schemes
4) Acts providing rules concerning recovery and resolution of failing credit inst. and investment firms
5) Acts establishing the EU system of financial supervision -> regulations and directives setting up a European systemic risk board and 3 EU supervisory authorities
6) esgulations establishing a singlie supervisory mechanism (first pillar of banking union) and single resolution mechanism (the second pillar of the banking union)

Question 15

Credit institutions

Answer 15

Those undertakings whose business is to receive deposits or other repayable funds from the public and to grant credits for their account

Question 16

Establishment of branch in other state (second directive change to first directive)

Answer 16

1st: host country control, authorization according to host state law
2nd: home country control: up to credit institutions state of origin to control its activities. host country is responsible for liquidity suprtvision of branches and able to adopt measures to apply its monetary policy

Question 17

2 Ways of carrying out business in other states

Answer 17

1) set up foreign branch

2) provide services abroad from country of origin without setting up an office