Speakers
Objectives
During the last sessions organised by Eurofi on the diversity of business models, a consensus was reached between industry and public policy makers that:
– The variety of banking business models, provided they are viable and sustainable (i.e. profitable and resilient), is an asset to ensure financial stability in Europe and to meet the different financing needs of economic agents within the EU.
– The fundamental objective of supervisors, and of the SSM in particular – is to analyse the risks that banks take, and whether the institutions are properly managed.
– Regulators and supervisors should be neutral with respect to the business model organization. Business models are already supervised based on proportionality and an individual assessment. However, how to incorporate the nuances of the different business models in EU regulation and supervision remains an open question. The objective of the session is to discuss how to ensure the sustainability of diverse business models in Europe by examining how to better reflect this diversity in the European regulatory and supervisory framework.
Points of discussion
- What improvements need to be made to EU financial regulation to take better account of the diversity of banks’ business models and notably the specificities of mutualists and cooperative banks, custodian banks and the new entrants (digital banks…)? Are these regulatory changes not level 1 (legislative changes)? how can such changes be achieved?
- How to further incorporate the nuances of banks business models in the EU supervisory framework? What is at stake? What are the obstacles created by the day-to-day supervision of the SSM that hinder this diversity? How can this diversity be better recognised in the day-to-day supervision carried by the SSM? How to more forward?