Against this background, the Banco de España has a tradition – one that I think it is comprehensively successful – of conferring high importance in its supervisory work to monitoring the rigour of financial information and of the models used to calculate riskweighted assets. Naturally, it is our wish that these elements, which crucially affect the supervisor’s capacity to properly measure banks’ solvency situation, should be part of the common model adopted by the SSM and applied uniformly to all banks. A third significant challenge concerns achieving a fruitful framework of interaction between the SSM and the Single Resolution Mechanism. The regulations have set in place a complex structure in Europe, which includes the creation of a resolution agency (the Single Resolution Board) separated institutionally from the supervisor. This agency has been granted wideranging powers both in respect of the definition of resolvability requirements – which include the determination of a minimum volume of instruments capable of absorbing losses – and of  4  BIS central bankers’ speeches  the activation of resolution procedures for non-viable banks, as well as the selection of the most suitable tools to implement them. Resolution actions have direct consequences for financial stability, which is a public good that the SSM seeks to protect, and they turn on the more vulnerable banks, which are precisely those that require greater attention from the prudential supervisor.
25 Đ Đ Reforms in the Markets in Financial Instruments Directive II (MiFID II) have also awected the global investment research climate, with potential spill-on ewects on the liquidity and vibrancy of public markets. Research budgets are shrinking and small to mid-cap stocks are increasingly seeing a reduction in research coverage [14] . These factors could impact the liquidity of public markets, especially for thinly-traded smaller firms which may not receive suwicient investor attention despite having strong fundamentals. 26 Đ Đ Amidst these trends, there is a need to respond to changing funding needs and be flexible to accommodate these evolving business models. 27 Đ Đ In Singapore, we seek to support corporates’ financing capabilities and needs across the corporate lifecycle – from early stage financing to mature companies looking to tap on financing from public markets. As part of Singapore’s Financial Services Industry Transformation Map (ITM) to transform Singapore into a leading global financial centre that connects global markets and supports Asia’s development, MAS has introduced a number of initiatives to support enterprise financing in both private and public markets. • Venture capital and private equity managers are an essential element in the financing lifecycle, by providing smart capital and operational and business expertise to portfolio companies. • To facilitate activities of venture capitalists to support small and medium-sized enterprises (SMEs), we have simplified and shortened the authorisation process for venture capital managers.