Europe's Single Supervisory Mechanism will need to develop a common supervisory philosophy and shared regulatory risk appetite, according to a senior official at one of its future member supervisory authorities, the Central Bank of Ireland. "I'd like to see the new single supervisory mechanism give its staff a clear mandate to be challenging and assertive with banks, and ensure that risks are not just identified but are mitigated, and mitigated in a time-bound manner," Matthew Elderfield, the bank's deputy governor in charge of financial regulation, told the Annual European Financial Services Conference in Brussels.
Elderfield said the SSM, which becomes operational next year and will directly supervise the approximately 150 largest banks in the euro zone, would need to combine their national supervisors' practices and procedures into a common approach. Elderfield, who worked at the Financial Services Authority for eight years, noted that it had not been easy to integrate the FSA's multiple
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