Margarita Delgado: Ten years of the Single Supervisory Mechanism - key aspects of modern banking supervision

Speech by Ms Margarita Delgado, Acting Governor of the Bank of Spain, at KPMG, Madrid, 24 July 2024.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Good morning.

Welcome to this celebration of the tenth anniversary of the Single Supervisory Mechanism (SSM). This is a landmark occasion: a chance to, first of all, cast our eyes back and look at what has happened in the banking sector over the last ten years and, second, reflect on what the near future may hold for us in supervision.

This anniversary represents, then, an opportunity to take stock of the current situation of the banking sector, how it has been affected by the new supervisory model implemented a decade ago and, above all, what lessons can we learn to continue improving, thereby strengthening our financial system?

I will divide my speech today into three parts. I will begin by considering the current situation of the banking sector under direct SSM supervision, before looking back at what has been achieved in these ten years and then finishing with my perspective on the challenges facing supervision in the future.

First, we must acknowledge that the banking sector is in generally good health, as indicated by the main ratios we use to measure the most significant risks.