About this learning event

The Single Supervisory Mechanism (SSM) comprises of the European Central Bank (ECB) and the national competent authorities (NCAs) of participating Member States. The SSM is responsible for the prudential supervision of all credit institutions in the participating Member States.

The SSM, which officially entered into operation in November 2014, is in itself a step towards greater European harmonization. It promotes the single rulebook approach to the prudential supervision of credit institutions in order to enhance the robustness of the euro area banking system.

Established as a response to the lessons learnt in the financial crisis, the SSM is based on commonly agreed principles and standards. Supervision is performed by the ECB together with the national supervisory authorities of participating Member States. The SSM will not “reinvent the wheel”, but instead it aims to build on the best supervisory practices that are already in place.

The SSM supervisory model uses a risk-based approach that aims to assessmaterial risks and risk management processes at a credit institution. This implies a comprehensive program of continuous analysis of the key risks at all credit institutions through on-going supervision and on-site inspections.

The SSM carries out on-site inspections, i.e. in-depth investigations of risks, risk controls and governance, with a pre-defined scope and time frame at the premises of a credit institution. These inspections are risk-based and proportionate.

What was it about

During the workshop, we touched upon the following topics:

• Development of a framework for the performance of on-site inspections
• Planning for on-site inspections
• Developing the right scope for an on-site inspection
• Practical organization of on-site inspections
• Knowledge and skills required for leading on-site inspections
• Reporting on the results of an on-site inspection

Benefit for participants

This workshop helped participants to better understand the challenges of performing prudential on-site inspections, identify best practices among current practices and develop the requested knowledge and skills to plan, organize and perform state of the art on-site inspections.

Learning objectives for the workshop:

• Examine the role of the different stakeholders in the banking supervision process
• Describe the framework for the performance of on-site inspections
• Develop practical knowledge about the performance of on-site inspections
• Increase the skills required for leading on-site inspections
• Appreciate the benefits of performing risk-based on-site inspections
• Gain insights and compare current best practices among current on-site inspection practices
• Debate on how to implement and develop efficient procedures for the performance of on-site inspections
• Network and share your experiences with other bank inspectors and senior staff members from central banks supervision departments, as well as representatives of financial supervisory agencies.

Who was it for

The workshop was designed for on-site supervisors (banking inspectors) and senior staff members from central banks supervision departments, as well as for the representatives of financial supervisory agencies.

Faculty

Marc Verleye, Advisor, Head of Group Banking Inspections, National Bank of Belgium, Belgium

Marc is coordinating all on-site inspections performed by the National Bank of Belgium on the significant and less significant financial institutions in Belgium and on a cross-border basis.

He is participating at the periodical meetings of the Heads of the on-site supervision units of the SSM and contributes to the methodological developments of the on-site inspection methodology. He was also involved in various working groups during the preparatory phase of the SSM focusing on drafting the on-site inspections methodologies (on-site inspection programs).

Marc is taking part in the National Bank of Belgium technical assistance missions/projects focusing on strengthening the institutional capacities of central banks supervision departments.

Didier Casier, Head of Division, Group Banking Inspections, National Bank of Belgium, Belgium

Didier is performing and leading SSM on-site inspections on significant financial institutions in Belgium and on a cross border basis.

Didier holds the professional certifications “Certified Internal Auditor”, “Certification in Control Self-Assessment”, “Certified Financial Services Auditor” and “Registered Forensic Auditor”.

He has worked for the National Bank of Belgium for 25 years and held various positions within the IT department, the Internal Audit department and the group Prudential Banking Inspections.

In addition, Didier regularly joins short term technical assistance missions of the National Bank of Belgium and the International Monetary Fund Monetary and Capital Markets Department.

Partners

This learning initiative was supported by: