cyril roux : the new regulatory and supervisory roadmap for europe address by mr cyril roux, deputy governor ( financial regulation ) of the central bank of ireland, at the banking union conference, dublin, 23 june 2014. * * * good morning. my thanks to the irish banking federation for inviting me to address this distinguished audience. it is my pleasure to be here with you. the last few decades have seen countries going back and forth between conducting banking supervision within or without central banks. but one thing remained constant : the domestic nature of supervision. to coordinate supervision within the eu, we have established in the past two main mechanisms : home host arrangements, and colleges of supervisors, in charge of joint risk assessment decisions. the ssm is a very big step beyond these two mechanisms for cooperation : as the name implies, we are now putting in place a unified banking supervisor in the eurozone. creating an international banking supervisor spanning 18 countries and trillions of assets is unprecedented. it is the most significant change ever made in european banking supervision. as the other two pillars fall into place, it forms the basis of the european banking union, which is arguably the main european project of our time. we have just heard from daniele nouy the operational challenges and opportunities presented by the single supervisory mechanism as seen from the ecb, so i will share with you how we at the central bank prepare for the implementation of ssm on 4 november this year. i will provide you with an update on the work we are doing to transition to this new regime of supervision, how it impacts upon the way we will organise ourselves and what it means for irish banks. our transition to ssm we have established a programme of work to prepare for implementation of ssm in the central bank – this project is called project europe. this the most significant project currently in progress in the central bank. it involves eleven divisions across the bank, from hr to banking supervision and it to legal and enforcement, among others. they work together under 23 separate work streams to ensure that we are prepared for 4 november. so what are we working on precisely? we revise our internal governance, reporting and decision making processes. we develop a supervisory board briefing process akin to that of the governing council. we are preparing to change our divisional structure in banking supervision we plan, devise and roll out training for all staff involved in ssm we update all our publicly available material on banking supervision and enforcement. we upgrade the receipt, validation and transmission

tools of supervisory and statistical data we revise our fitness and probity regulations and our internal workflow around same. we support the department of finance in its drafting of transposing legislation. in so doing, the establishment of the ssm provides us with the opportunity to improve and strengthen our tools and procedures so that we can be an even better supervisor. our aim is not only to ensure that we will have completed all preparatory tasks in support of the ecb ’ s bis central bankers ’ speeches preparations but also to make the necessary organisational changes to allow us to deliver on our supervisory mandate ever more effectively. in doing so we seek to ensure that we are giving full expression to the aims and objectives of the ssm – not the mere implementation of the minimum required to be compliant with ssm methodologies and structures. but of course, we cannot do this in isolation. we have recently had the pleasure of hosting a series of visits by senior management of the ssm in recent weeks, and we are also looking forward to the visit of daniele this afternoon. in april, we were visited by dr korbinian ibel who is the director general in charge of dg iv of the ssm, which, among other tasks, is in charge of developing the ssm policies and methodologies and ensuring that all national supervisory authorities apply the ssm rules and procedures consistently, for significant and less significant institutions alike. we held a series of meetings with colleagues from different divisions, including our risk division. our risk based approach to supervision which was introduced by the central bank in 2011 has been considered in detail when devising the ssm approach of judgment based, forward looking supervision that daniele has described. as she already indicated, the system which will be used by the ssm will be based on the prism system that we currently use. this software will be adapted to the ssm methodology. more recently, in early june, we welcomed stefan walter and ramon quintana, directors general of dg i and dg ii of the ssm, with their deputies, for another fruitful day of meetings and engagement which some of you will recall being involved in. this afternoon, we will introduce daniele to the banking supervision team and also to the wider project team which includes colleagues from a variety of divisions including our policy and risk divisions, hr, it, statistics, enforcement and legal. we will host a town hall style meeting with all staff affected by the changes brought about by ssm