EY working with the EU institutions

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Banking Union and the new institutional landscape for the FS industry

The EU’s commitment to create a safer and more integrated banking sector has led to an enormous change in how banks are supervised and managed when failing. Within the Eurozone, the launch of the Banking Union in 2014 initiated a program to integrate the vast majority of responsibility for bank oversight and remediation into two powerful European organizations — the Single Supervision Mechanism (SSM) and Single Resolution Mechanism (SRM).

Across the EU, a single supervisory rule book, monitored by the European Banking Authority (EBA), maintains financial stability in the EU, safeguarding the integrity, efficiency and orderly functioning of the banking sector.

EY’s Banking Union Center

At EY, we believe we have a significant role to play in the understanding, shaping, and building of better working financial markets. The ongoing transformation of European banking regulation and supervision is critical to this, being of huge importance to governments, banks, supervisors and the broader economy. Because of the particular importance that Banking Union plays in this agenda, we have built an experienced team within the EY Banking Union Centre across Europe, with a specific focus in the core financial hub of the Union (Frankfurt and Brussels). It includes professionals from all areas of our practice, from assurance and regulatory excellence, to risk, prudential and operational advisory, and cybersecurity. EY closely follows the Banking Union agenda to help inform, assess and help banks meet the demands of the new supervisory framework.

The Center works closely with the FS Government team, which provides it with support personnel and looks after the day to day aspects of the Banking Union centre, EY Global Regulatory Network, the EY EU Government team, and the EY Center for Regulatory Excellence. Critically, the Center also has a lead partner based in each Eurozone jurisdiction, whose role is focused on the particular impacts of Banking Union locally and its bearing on the broader Eurozone. This structure leverages the full power of EY’s insights, understanding, technical knowledge and relationships across Banking Union, as well as coordinating our actions across all Eurozone countries and throughout our various practice areas. It also works to help facilitate the Banking Union agenda, acting as a single point of entry to EY, combining the power of an integrated network with the local market knowledge.