On November 4, 2014, the European Central Bank (ECB) introduced a new system of banking supervision for the euro area, the Single Supervisory Mechanism (SSM). The SSM created a new system of financial supervision that comprises of the ECB and the national competent authorities of participating EU countries. The ECB is responsible for the effective and consistent functioning of the SSM and for co-operating with the national competent authorities of participating EU countries.
Banks need to ensure they are meeting the SSM demands from a capital management perspective, prudential reporting perspective and beyond. Regulation will continue to ramp-up demands on banks through the implementation of CRD IV reporting, on-going issuance of regulatory and implementing technical standards and guidelines from the EBA and for eurozone countries the implementation of the SSM and SRM.
Banks need to respond to the demands and changes arising from SSM in the shorter and longer term. Key areas we assist our banking clients with include: data and regulatory reporting under SSM, EBA Guidelines, resolution and recovery planning; risk management framework reviews; asset quality reviews; capital planning; stress testing; ICAAP; credit loss forecasting, leveraging IFRS 9 impairment lifetime loss estimates.