Towards the single supervisory mechanism for banks: getting prepared
Report of the workshop of 2 April
In November 2014, the single supervisory mechanism (SSM) will be a fact. All banks of the EURO area, and perhaps also banks of some non-EURO Member states, will be directly or indirectly supervised by the ECB. This in itself is already challenging for banks, as the supervisory processes, principles and practice will change. The national practices of supervisors, well known by the local financial institutions, and often very diverging among member states, will be replaced by a new approach, still to be developed by the ECB, but at least fully harmonized among the participating member states. Banks wonder what practical implications this harmonization will have, both in terms of supervision and reporting requirements. What will this mean for banks, active in several participating member states: will their management be facilitated because the focus of the ECB will be on the consolidated level, or will the “solo” level of supervision prevail? What will be the future treatment of “national discretions” of participating member states? Will the SSM also mean a fully harmonized approach of the issues like “structural split of banks” and “macro prudential” supervision? And how will the relations with the non-participating member states be organized. What will be the role of the ECB versus the EBA? Plenty of questions which require urgent clarification or at least orientation.
This workshop focussed on the practical consequences of the SSM for bank management.
- Survey among participants
- General comments from a supervisor (Rudi Bonte, NBB)
- General comments from the European banking federation (Gonzalo Gasos, EBF)
- General discussion
- Focus on supervisory culture and tools
- Focus on the comprehensive assessment
- Focus on practical functioning of the SSM for a large bank
- General conclusion
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