Time: 8:00am - 5:00pm Venue: Room 3.1, CCLS, 67-69 Lincoln's Inn Fields, London, WC2A 3JB
Banking supervision in the euro area has improved significantly following the creation of the Single Supervisory Mechanism (SSM) and overall the resilience of large Euro area banks has improved. Nonetheless, important vulnerabilities remain and banking supervision continues to face important challenges, mostly relating to resources, liquidity risk, credit risk, NPLs, and the fragmentation of national laws.
Bank crisis preparedness and management have been substantially upgraded, but here too the regime remains fragmented. The same bank crisis preparedness and management framework faces significant transitional and structural challenges with, for instance, the build-up of bail-in-able financing (known as MREL), which should be expedited, prioritising large banks. Further problems relate to the provision of emergency liquidity assistance (ELA) and the availability of other adequate financial resources, through the Single Resolution Fund (SRF). A clarified financial stability mandate for the ECB would help in this regard.
These are some of the main vulnerabilities identified by the IMF in their latest FSAP of the Euro Area, which will be discussed during the event.
