With publication of the results of its Comprehensive Assessment at the end of October, the European Central Bank (ECB) has set the standard for its new mandate as supervisor. But this was only the beginning. The heavy work started in early November, with the day-to-day supervision of the 120 significant banks in the eurozone under the Single Supervisory Mechanism (SSM). The task of centralising the supervision in the eurozone will pose a number of challenges for the ECB in the coming months and years.
The CEPS Task Force on “ECB Banking Supervision and beyond”, chaired by José-Maria Roldan, former Director-General of the Bank of Spain, has discussed and analysed the challenges that the Single Supervisory Mechanism is likely to encounter in the upcoming three to five years. During three meetings, around 60 experts took stock of the developments in the EU banking sector in the aftermath of the financial and sovereign crisis and closely examined the preparations for the SSM and its interaction with other regulatory initiatives. This meeting will mark the formal launch of the report.