Meeting the challenge of the Single Supervisory Mechanism has been saved
Meeting the challenge of the Single Supervisory Mechanism
4 November 2014
The Single Supervisory Mechanism (SSM) today opens for business as the ECB takes over responsibility for prudential supervision of all banks in the Eurozone. The first 12 months of the SSM will be key for establishing the priorities and supervisory approach of the SSM, with the first six months dominated by addressing the findings of the recently completed Comprehensive Assessment (CA).
Deloitte’s Centre for Regulatory Strategy Co-Leader, Clifford Smout, comments on the implications for banks:
“All Eurozone banks should be forming a view on how the comprehensive assessment will inform the ECB’s priorities and how the ECB’s supervisory approach will change from the status quo at the national level. For some banks, a proactive, managed supervisory strategy will be a new endeavour.
“As an item on the board agenda, the SSM has moved centre stage. It is no longer about the process of set-up and execution of the CA. It is about strategy and taking the opportunity to make a fresh start in the supervisory sphere. Banks will need to establish trust and understanding of their business with supervisors. In the past this has been an interactive process over many years; in contrast the new relationship with the SSM needs to be established immediately. In our experience, the impact of supervision on banks – both the financial cost and the call on senior management time – depend on how actively banks manage the regulatory relationship.”
Notes to editors
Further information can be found in Deloitte’s paper, Meeting the challenge of the SSM: How banks should get ready for the new regime.
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.
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The information contained in this press release is correct at the time of going to press.
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