Week 4 Banking Part 2 Flashcards
1
Q
What is ssm
A
Single supervisory mechanism
Core component of the banking union
Responsible for authorisation and micro prudential supervision and partly for macro prudential supervision of banks, financial holding companies and mixed financial holding companies in participating MS
Key features
Responsible for prudential supervision of all banks and for the direct supervision of “significant” banks
2
Q
Key characteristics of new approach
And ssm priorities
A
Harmonising risk based, forward looking supervision
More quantitative approach
Supervisory consistency as a driver for change
Peer group analyst as a key tool
Priorities :
Business model and profitability risk Capital adequacy Credit risk Liquidity Risk governance and data
