Governance, business models and risks. Srep disclosure and banks’ supervision

Andrea Enria’s chairmanship of the Ssm is contributing to a higher degree of market disclosure by the Ecb with regard to its supervisory function. The public letter issued on 28 January 2020 concerning the results of the Srep 2019 cycle was the first to specify the single capital add-ons for Si banks, applied during 2020. It also enables a more thorough analysis of the individual areas of the Srep process: business model, governance and risk management, risk to capital and risk to liquidity. In spite of the progress made by the Ssm in the harmonisation of supervisory processes during its first five years, in our opinion there are still problems to be overcome with regard to disclosure, also in relation to the banks themselves, especially in terms of methodology.