TEXT: ECB Starts Consultation on Guide to On-Site Inspections

     PARIS (MNI) - The European Central Bank on Thursday released the following

statement calling for a public consultation on a draft guide for on-site bank

inspections and internal model investigations: 

     "The European Central Bank (ECB) today launches a public consultation on a

draft guide to on-site inspections and internal model investigations.

Inspections are a critical tool for banking supervision worldwide. The objective

of the guide, which was drafted in close cooperation with the national competent

authorities (NCAs), is to explain how ECB Banking Supervision conducts

inspections and to provide a useful document for banks subject to such

inspections.

     An inspection of a bank aims to provide an in-depth analysis of its various

risks, internal control systems, business models or governance. It has a

pre-defined scope and time frame and takes place on the premises of the

inspected bank or a related legal entity. An inspection should be intrusive

while adhering to the principle of proportionality and aims to provide a

detailed snapshot of the situation of a given bank, including a forward-looking

analysis. The guide provides an overview of the general framework under which

inspections are conducted, describes the different inspection phases, and sets

out the principles of inspections to be followed by both banks and the

inspection teams.

     The consultation on the document starts today and ends on 15 September

2017. The relevant documents, comprising the draft guide as well as an FAQ, are

available on the ECB's Banking Supervision website."

--MNI Paris Bureau; tel: +33 1-42-71-55-41; email: jack.duffy@marketnews.com

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