Andrea Enria's speech: "Challenges for the future of EU banking"

Andrea Enria, the Chairman of the European Banking Authority has given a speech at the III Financial Meeting organised by CECA and the Spanish Banking Association in Madrid on 14 January 2015.

The Mr. Enria highlighted that there are three levers that should be activated to achieve more effective and consistent application and enforcement of the common rules. First, there is a need to strengthen internal governance and controls at all levels – functioning of boards, selection of staff, the governance of bringing products to the market, incentives to both risk-takers and sales staff, monitoring through active use of customer complaints, punishments for misconduct. Second, there is a need to seriously review the approaches used so far to quantify and mitigate operational risk, also considering the possibility of setting specific requirements for conduct risk. Third, there is a need to set out a more harmonised and predictable framework for sanctions, that ensures fairness of treatment across cases and across borders.