The supervision of credit institutions is based on the applicable European supervisory framework, as complemented by the national institutional framework.
The EU framework on the supervision of credit institutions consists of:
- Directive 2013/36/EU of the European Parliament and Council (“CRD IV”) on the access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC.
- Directive (EU) 2019/878 of the European Parliament and the Council (“CRD V”), amending Directive 2013/36/EU as regards exempted entities, financial holding companies, mixed financial holding companies, remuneration, supervisory measures and powers and capital conservation measures.
- Regulation (EU) 575/2013 of the European Parliament and of the Council (“CRR”) on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012. Regulation (EU) 575/2013 was amended, inter alia, by Regulation (EU) 2019/876 of the European Parliament and the Council (“CRR 2”), amending Regulation (EU) 575/2013 as regards the leverage ratio, the net stable funding ratio, requirements for own funds and eligible liabilities, counterparty credit risk, market risk, exposures to central counterparties, exposures to collective investment undertakings, large exposures, reporting and disclosure requirements, and Regulation (EU) No 648/2012.
The provisions of Directive 2013/36/EU have been transposed into Greek national legislation by Law 4261/2014, which was amended, inter alia, by Law 4799/2021 transposing Directive 2019/878.
This law includes, inter alia, provisions on:
- the establishment and operation of credit institutions;
- the approval or exemption from approval of parent financial holding companies and parent mixed financial holding companies of banking groups;
- the freedom of establishment and provision of services by credit institutions;
- prudential supervision rules;
- the powers of supervisory authorities and administrative penalties they may impose on credit institutions;
- the corporate governance of credit institutions;
- the remuneration policy implemented by credit institutions;
- the introduction of capital buffers to be maintained by credit institutions.
Regulation (EU) 575/2013 is directly applicable in all EU Member States, without any need for transposition of its provisions into the national legislation of each Member State.
An important development in the EU regulatory framework on credit institutions was the adoption of Directive 2014/59/EU of the European Parliament and of the Council establishing a framework for the recovery and resolution of credit institutions and investment firms and amending Council Directive 82/891/EEC, and Directives 2001/24/EC, 2002/47/EC, 2004/25/EC, 2005/56/EC, 2007/36/EC, 2011/35/EU, 2012/30/EU and 2013/36/EU, and Regulations (EU) No. 1093/2010 and No. 648/2012 of the European Parliament and of the Council. The Directive, as transposed by Law 4335/2015, aims at harmonising procedures for the resolution of credit institutions at the EU level and endows national authorities with common powers and tools designed to prevent crises.
In the context of crisis prevention, provision has been made, inter alia, for:
- requirements for the preparation of recovery plans by credit institutions;
- early intervention measures that competent authorities may take in order to prevent credit institutions from failing.
- In addition, the regulatory framework on credit institutions includes:
- all relevant delegated Regulations on regulatory technical standards, as well as implementing Regulations on implementing technical standards adopted by the European Commission;
- all decisions/acts issued by the Bank of Greece pursuant to its Statute concerning the exercise of its regulatory responsibilities (Executive Committee Acts, Bank of Greece Governor's Acts, Credit and Insurance Committee Decisions, as well as decisions of its predecessor, the Banking and Credit Committee).
In addition, specifically for credit institutions operating in the form of credit cooperatives, the regulatory framework on their operation is set out in Law 1667/1986 on civil cooperatives and Governor’s Acts 2258/2.11.1993 and 2471/10.4.2001, as currently in force.
Finally, the supervisory framework on branches of credit institutions based in countries outside the European Union is laid down in Executive Committee Act 58/18.1.2016.