denis beau : ten years of single supervisory mechanism ( ssm ) banking supervision - key achievements and main challenges ahead closing speech by mr denis beau, first deputy governor of the bank of france, at the conference held at the prudential supervision and resolution authority ( acpr ), paris, 26 june 2024. * * * ladies and gentlemen, i would like to say a few words in conclusion, without, however, coming back on all that has already been very well developed throughout this conference. the discussions we have just heard inspire me with this image that the ssm is like a tree. i. the ssm " tree " can rely on its solid roots first of all, it seems to me that this unprecedented and ambitious mechanism is now very firmly established thanks to solid roots. these roots stem from the founding texts that we have built, discussed and enforced together, such as the ssm regulation and the ssm regulation framework. in addition, the robustness of ssm regulatory roots also result from ( i ) their concrete operational implementation and ( ii ) the way in which sb chairs and teams have taken over and shaped a solid and demanding system. i would therefore like to pay particular tribute to their work, which has helped to bring a unique mechanism out of the ground. i will come back to this later. like the roots of a vigorous tree, the project has been able to grow and strengthen, nourished by values based on cooperation and pragmatism. ssm teams were able to create a framework of confidence to ensure effective supervision : trust among supervisors and between supervisors and supervised institutions. this environment of trust has provided the basis for building an ambitious and demanding mechanism. the teams involved in the implementation managed to exchange and adopt best practices in a co - construction spirit. in that view, we can be particularly proud of the way in which the joint supervisory teams – jsts – operate. these multinational teams are a concrete demonstration of the success of european integration and cooperation. they have truly succeeded in transcending the national visions that might have seemed an obstacle at the outset of the project. i would add that, in the same spirit of cooperation, the ssm has succeeded in implementing, in a very practical way, a level - playing field across institutions. i can tell you, as a supervisory board member that this fair treatment and the sense of proportionality are always at the heart of our discussions and decisions. i believe that this has contributed to establish a high level of

##ly resolutions and of being a tool for effective and efficient crisis management. it encompasses both quantitative requirements, at this stage in the form of additional capital requirements for systemic banks and more qualitative and strategic plans, designed at the level of systemic institutions. discussions are well advanced for banks, still in their beginning for infrastructures, mostly to come for the others, as long as they will be considered as systemic players. this is the area where the issues probably are the more complex, having to deal with different legal and failure regimes, the recognition of foreign resolution authorities and powers and for regulators and supervisors, the need to strike the right balance between the appropriate degree of transparency for stakeholders and creditors and of discretion for supervisors, to prevent runs or self - fulfilling prophecies. this heavy agenda may keep us quite busy for some times, but it is a cornerstone to our overall objective of preserving global financial stability. encompassing all these endeavors, solving the tension between globalization, on the one hand, and differences between national or area wide regulatory framework, on the other hand are no small challenge. a healthy debate between academics, regulators and all sectors of the financial industry – who are not the least vocal -, is very much needed. i hope that today ’ s conference has been helpful in advancing this debate. beyond debates, availability of data and access to these data by the various stakeholders will be key for making progress. last but not least, concentration, increasing complexity, and the fact that some players are still very much out of the radar screen – such as hedge funds for instance - should keep everyone on their toes, in particular when assessing interconnectedness. i thank you very much for your attention. bis central bankers ’ speeches