The first edition of the annual conference “Compliance and Strategy in International Banking” organized by the Universities of the Roman pole in “La Sapienza”, called “The SSM turns ten: challenges and opportunities for the banking system” has the aim of discussing the mode of transposition of the changes relating to the structure of the new supervision and the evolution of the internal control process of intermediaries, also taking into account strategic planning.
Following the crises that threatened financial stability in Europe and beyond, the Single Supervisory Mechanism (hereinafter also “SSM”) was introduced in 2013 in order to: (i) safeguard the safety and soundness of the European banking system; (ii) increasing financial integration and stability; (iii) ensure consistent supervision. This mechanism, which provides for collaboration between the European Central Bank (hereinafter also “ECB”) and National Competent Authorities (hereinafter also “NCAs”) or National Central Banks (hereinafter also “NCBs”), has changed the architecture of supervision in Europe, redesigning the distribution of tasks and responsibilities among the authorities.
In light of this, the aim of this conference is to discuss how to transpose the changes relating to the structure of the new supervision and the evolution of the intermediary control process, distinguishing between “Significant Institutions” (hereinafter also “SI”) and “Less Significant Institutions” (hereinafter also “LSI”). The focus is on transposition in Europe and how, since the introduction of the SSM, the NCAs has linked supervision and sanctioning power with the supranational authority. Particular attention is paid to the analysis of the entire control process, in particular on the harmonization of the sanctioning activities of the entire SSM, distinguishing between the ECB’s sanctioning activities for SIs, as well as that relating to the various NCBs for LSIs. Indeed, despite the significant progress made at a European level, it is indeed necessary to analyze the challenges still to be addressed in order to ensure the continued stability of individual banks and consequently of the entire financial system, in order to ensure the full effectiveness of the SSM. This perspective is supported by the fact that this path of improvement can take place, today, and in the future, following a perspective of efficiency, integration and strengthening of the sanctioning activities in the context of European banking supervision. This is because through a constant dialogue between institutions, academics and operators in the sector, it is possible to enrich the path and identify the most appropriate solutions to face the new challenges that emerge at an increasingly pressing pace in the global, European and national banking and financial landscape.
The conference includes three main topics: the first aims to put the SSM in context, taking into account the supervisory harmonization process; the second explores the issue of sanctions in order to assess the heterogeneity of the current sanctioning procedures at EU level; the third, on the other hand, intends to highlight the strategic role that the Compliance Function assumes in the context of banks, also in consideration of the possibility of resorting to outsourcing.