Speech Ms Sabine Lautenschläger, Member of the Executive Board of the European Central Bank, at the Fifth FMA (Austrian financial market authority) supervisory conference.
Nine months ago to the day, the Finanzmarktaufsicht (Austrian financial market authority or FMA) issued two press releases announcing major "restructuring measures". According to the FMA, banking supervision in the euro area would be built on "new foundations" in 2014 and the year would bring new tasks and challenges.
I really like the building site metaphor. It isn't hard to imagine what the challenge of laying new foundations and constructing a new building - especially during regular operations - means.
This event today is about national supervision in a European system and where the new balance lies. The focus is therefore on the stability of the European supervisory building.
Now, there are clear rules or conditions to be complied with when constructing a building. Tasks and responsibilities must be clearly defined. Everybody needs to know what to do or to leave alone - and that goes for the Single Supervisory Mechanism (SSM), too. The European supervisory building, consisting of the ECB and 19 national supervisors, isn't a single family home, but a large building complex; a structure that should be sturdy and stable, even in stormy conditions.
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