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Single Resolution Board Chair Addresses BPFI Banking Conference

Pictured L to R: Sabine Lautenschläger, Member of the Executive Board of the European Central Bank Dr Ali Ugur, Chief Economist and Head of Prudential Regulation Elke König, Chair, Single Resolution Board

17th January 2019

Banking & Payments Federation Ireland today hosted its Risk Management & Supervisory Conference, The Future Supervisory Landscape at the Westbury Hotel Dublin. Among the speakers addressing the conference was Elke König, Chair, Single Resolution Board (SRB) who discussed the most recent developments of the SRB including setting minimum requirement for own funds and eligible liabilities (MREL). Speaking on the key issue of resolvability Ms König said:

Building up sufficient MREL and addressing obstacles to resolvability are essential in making every bank resolvable. The direction of travel is clear and responsible bank managers have not waited and have already started taking adequate steps. Banks themselves are best placed to make themselves fully resolvable and the SRB expects banks to make themselves resolvable so that we can handle failing institutions with minimum impact on the wider economy.’

Also speaking today Sabine Lautenschläger, Member of the Executive Board of the European Central Bank, outlined the supervisory perspective of the ECB.

“Whatever may come in the next years will bring relevant changes and challenges for banks, markets and their supervisors in more ways than one. It will be Brexit and it might be other geopolitical risks, the low interest rate environment and climate change, legacy and maybe future non-performing loans, or technological change, just to name a few. What is important is that banks remain vigilant about the emerging risks, stay agile and adapt their profile accordingly – because what we need in the euro area are strong, resilient banks which can withstand a storm and still serve the real economy.”

Sponsors of today’s event, Mazars, were represented by Pauline Pélissier, Senior Manager, Financial Services Consulting. Speaking on the theme of innovation and its impact on banks’ business and operating models Ms Pélissier said:

“Innovation is exciting as it holds both threats and opportunities for our banking systems. New technologies and data disruption have changed the customer’s behaviour and expectations. Boosted by the regulations, open banking is now a reality traditional banks have to face and forces their business and operating models and culture to change. Innovation and new technologies are appealing but carry their own risks.”

 

For Further Information Contact: Jillian Heffernan, Head of Communications, BPFI, ph: 01 474 8835 / 087 9016880

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