 My name is Susan Carroll and I'm it's my pleasure to be your emcee for this two-day event Our topic is a very timely one ten years after its conception Has the banking union stood the test of time? Well, we're going to find out over the next two days But before we officially start just a bit of information from me particularly for those of you joining us online And we had more than 600 people registered. Thank you very much for that Just to tell you how you can interact with us We will be taking questions via mentimeter You can see on your screens details of how to submit them for our in-person audience I think the traditional raising of the hand still works just fine You can also follow the discussions online on Twitter using the hashtag SRB ECB 2022 Finally a hint to all of our speakers We are on the record our speeches and our discussions are being streamed live on the SRB and ECB websites And also on YouTube now. Let's get started It's my pleasure to hand over to our joint host Andrea Enria chair of the supervisory board of the European Central Bank for some opening words Mr. Enria Thank you. Thank you very much. I'm really very glad to welcome you to our first conference joint ECB and single resolution board We have been thinking about this for a while and finally we managed to do it and finally we managed to do it in person at least in part and and and and also at the exact time of the 10 years anniversary of the conception of the banking union which was proposed at the European Council at the end of June in 2012 so 10 years ago however, the single supervisory mechanism was not legally enforced until two and a half years after that decision and it was After four years that the single resolution board that was legally operational so from the point of view of our age the two institutions the two pillars of Of the banking union have been operational for much less than a decade But yet I think that we can say that we have achieved quite a lot in this in this period the considerable reduction in non-performing loans the Risking of the banks balance sheet from 8% and PR ratio in 2014 when the ECB started these tasks to the end of last year 2% and Also that the supervisor response to the crisis not to the pandemic that was Very very fast and enable banks to continue supporting corporates and households also in the first very difficult times of the of that crisis and and Empirical evidence shows that that space that we gave as supervisors was useful No, for was used by banks to continue support in lending and And and economy as a whole also the distribution the decision not to distribute dividend to recommend not to distribute dividends and to create Operational relief for the banks. I think was very very useful at that time But what for me was really key was that for the first time there was a joined up response so supervisory monetary policy fiscal response regulations everything moved in the same direction showing that a Symmetric shock was actually met with a comprehensive policy action at the European level for the first time And also the SRB of course, I'll say much more than I can but Establish itself as a strong pun European resolution authority and these was reflected not only in terms of banks preparedness or Through resolution planning and a minimum requirement for own funds and eligible liabilities But also swift interventions in the few cases luckily that we have banks that we had the failing Or likely to fail in these first years of the banking union So these unified response would not have been possible if it was not With the banking union in place would have been unthinkable really and I want to stress that and that's why this Meeting for me is important is that close cooperation between the SSM and the SRB has been Integral part of our efforts throughout all these years Take also our joint handling of recent crisis cases such as bear bank I mean given the limited time available to respond to fast-moving crisis situations and the relatively complex let's say decision-making processes that we have it would be Impossible I would say without effective cooperation to manage the orderly wind-down of a bank and and This consists not only the quickest change of information no at the time But also the consultation and cooperation between the two authorities as provided by legislation throughout the whole process and these these This cooperation is not this collaboration is not only an issue of the last days of life of a bank No, it's it's it's the endpoint of a coordination process that starts much much earlier as Set out also in our inter-institutional memorandum understanding To make sure that both institutions are on the same page when push comes to shove The ECB is consulted on the resolution plans of that the SRB prepares while the SRB provides feedback Of course on the recovery plans of significant institutions that the ECB is responsible for and our information exchange is not limited to crisis cases, but We are also sharing insights on key system-wide vulnerabilities. We for instance now Work together in in the extended contact group monitoring developments following the aggression of Russia in in Ukraine and We are exchanging always bank specific informations also matters such as MRA. So we have come a long way We are certainly not yet reached our final destination The banking union remains incomplete in several respects For large banks, we have a uniform and effective crisis management framework in place But the same cannot be said for Small and medium-sized banks Prudential regulatory barriers to a truly single European banking market remain In terms of home what we call home most I hate referring to home most for something that happens within the banking union But still what we improperly call home most issues Within the banking union and the third pillar of the banking union, of course a common deposit insurance scheme is still missing All these issues were discussed at the Eurogroup meeting last week But an agreement on a roadmap to complete the banking union proved elusive once again These are complex political negotiations that go to the very heart of the kind of union We want as European citizens and here I'm not talking only about the banking union, but also about the European Union itself It is only natural that we there are different viewpoints and that negotiations are proving complex But as I say the time and the game I'm I'm today more convinced than ever that we cannot stand still while complex political negotiations play out This is why we have I my colleagues the colleagues in the SRB once and again Explored avenues to maximize the full potential of the legal and regulatory framework that we currently have in place This concern in particular the Prudential regulatory obstacle still impeding the cross-border integration of the U banking sector More recently I raised also some you know Proposal for incremental reforms of our crisis management framework in particular for the resolution of miss size banks We regularly discuss these issues with the LK with the colleagues at the SRB And I believe we share a lot of views on a number of issues as a result of our common experience with crisis cases In the first years of the banking union These reforms should in my opinion include an expansion of the pool of banks which qualify for resolution and Expanded the role for DGS for deposit guarantee schemes Other than their pay box function boosting the ability to fund on a list cost basis The smooth exit from the market also smaller banks a widespread use of the purchase and assumption Transactions that along the years approved to be the cornerstone of the US Successful framework for crisis management resolution and therefore a harmonized framework for administrative liquidation I mean, they're all very consistent and part of a package in my view And again, even though I was disappointing as everybody else here in this room that there couldn't be broader agreement In last week I take comfort from the fact that the finance ministers Agree to improve the resolution framework mostly along the lines that we discussed with our colleagues and which seems to be Important, you know improvements based on the experience that we had so far I'm about to give to the floor to commission and McGinnis to kick off the conference with their keynote speech And would like to underscore that I personally look forward to cooperating with her with LK Which shown offering all the technical advice My staff can provide for a comprehensive review of the crisis management framework in order to make it more effective Tcb banking supervision, we are acutely aware that an effective framework for market exit That does not impair financial stability is key for an efficient banking sector able also to compete on a global scale And I'm reassured by the fact that this this prong of the regulatory reform program Has been mandated to the ordinary Legislative procedure with initiative from the commission and agreement between the colleges latest because I believe in this way the entrenched political obstacles the red lines that we have been hearing about in this period going the second in the second The line and and we have the appropriate decision-making process to try to move ahead I'm sure that these two days we will be hearing many analysis and proposals on how to improve our current regulatory framework both for the SSM and the SRB and again I'm sure that discussion will be extremely insightful and fruitful even though The holy grail of the single deposit guarantee scheme will not be at the center stage of the table And then very much looking forward to the discussion and and and the debate So after commissioner McGuinness keynote speech today's first panel moderated by Laura Noonan We'll discuss how to move crisis management forward and I look forward to the insights from our panel panelist Sean Berrigan, Elke, Koenig, Peter Simone and Irena Tinayi will offer to us. The following panel will have its eyes firmly on the future Jennifer Baker will moderate the discussion with Patricia Boydens, Devin Martel Lopez and Marlene Piccaro On how the banking sector might look like in 2040 Following tomorrow's keynote speech by Johan Thais a topic that has become even more salient due to the Russia's war in Ukraine Will take center stage operational resilience The ECB and banks alike actually have already been on a high alert for cyber risk And Russia's waging war on Ukraine with increasing risk of cyber attacks has only heightened our and the banks vigilance in this area While so far cyber attacks were primarily financially motivated There is now a threat that aims at the destruction of critical infrastructures Trying to cause as much disruption as possible Elena Carletti, Elizabeth McCool, Christian Osig and Fernando Restoy will explore ways of safeguarding banks Operational resilience in these turbulent times in a discussion moderated by Raymond Franken And Elke will tomorrow conclude the conference with their closing remarks before I conclude this short introduction Allow me to thank Elke for the very fruitful cooperation along these years Both when I was chairing the European Banking Authority and now as chair of the ECB Supervisory Board I've already praised the the level of cooperation and information sharing between our two institutions But I would also like to thank to thank Elke for our personal interaction and cooperation during this period She has been an outstanding first chair of the single resolution board And I know from personal experience that it's not so easy to set up new institutions And especially so if you need to take all difficult challenges in the first years of your life and and As I mentioned, this is the first SRB and ECB conference But also the last that we lost together. Elke will leave at the end of this year I will leave at the end of next year But we still have full six months to collaborate closely Hopefully not on concrete crisis cases and the close collaboration between the SRB and the ECB I think is really is a strength of our institutional framework and this has been built also through the I mean institutional are made also people and the good relationship between the leadership of The two institutions which has been built up by Daniel and we by Elke partly by myself Is something that I think we need to treasure and preserve in the years to come. So, thank you very much for your rotation. Thank you