Why do we need banking supervision at the European level? Should a bank be allowed to fail? What does a normal day look like for a supervisor? What are the supervisory challenges posed by Brexit? Our host Michael Steen discusses these questions with expert guests Andrea Enria, Pien van Erp Taalman Kip and Linette Field.
The views expressed are those of the speakers and not necessarily those of the European Central Bank.

Published on 21 January 2020 and recorded on 6 December 2019.

In this episode:

(01:03) A safe and sound banking sector
Why do we need banking supervision at the European level, why should banks be allowed to fail and why is transparency towards private investors a priority in a bail-in world?

(12:13) A day in the life of a supervisor
What does a banking supervisor do, what are Joint Supervisory Teams and why can’t supervisors be of the same nationality as the bank they supervise?

(20:43) Challenges for banks: profitability, cybersecurity and Brexit
Why is it important that supervisors understand the risks banks face, why do they care about banks’ profits and what are the challenges posed by Brexit?

Further reading:

Explainer: SSM explained in 3 minutes
https://www.youtube.com/watch?v=xC_2N0Y20qQ

Webpage: Relocating to the euro area
https://www.bankingsupervision.europa.eu/banking/relocating/html/index.en.html

Supervision Newsletter: Brexit: operational risk increases when banks delay action
https://www.bankingsupervision.europa.eu/press/publications/newsletter/2019/html/ssm.nl191113_2.en.html

Supervision Newsletter: Brexit: stepping up preparations
https://www.bankingsupervision.europa.eu/press/publications/newsletter/2019/html/ssm.nl190814.en.html

Speech: A Enria, Chair of the ECB’s Supervisory Board: Supervising banks – Principles and priorities
https://www.bankingsupervision.europa.eu/press/speeches/date/2019/html/ssm.sp190307~28d206eae5.en.html

Speech: A Enria, Chair of the ECB’s Supervisory Board: The banking union – a personal view on its past, present and future
https://www.bankingsupervision.europa.eu/press/speeches/date/2019/html/ssm.sp191030~a66780e0a5.en.html

Speech: A Enria, Chair of the ECB’s Supervisory Board: Is less more? Profitability and consolidation in the European banking sector
https://www.bankingsupervision.europa.eu/press/speeches/date/2019/html/ssm.sp190704~1f442782ac.en.pdf?2773aa57fc4093122a0effc8247b6a8b

Speech: A Enria, Chair of the ECB’s Supervisory Board: A binary future? How digitalisation might change banking
https://www.bankingsupervision.europa.eu/press/speeches/date/2019/html/ssm.sp190311~2af7fb032e.en.html

https://www.ecb.europa.eu/