Supervisory practices

Our supervisory measures aim to ensure that the banks we supervise comply with prudential requirements. Our measures encourage banks to take the actions needed to address any issues as early as possible.

If banks fail to comply with prudential requirements or with our supervisory measures, we can also impose enforcement measures. We can only impose these measures in the case of ongoing breaches.

Sanctions are intended to punish misconduct and serve not only as a deterrent to the bank concerned but also to the banking sector as a whole. Our sanctions are also intended to encourage a culture of compliance within the European banking system.

In European banking supervision the ECB is in charge of banking authorisations. Here, the ECB applies the Single Rulebook of the European Banking Authority and, where relevant, national law. The ECB also works together with national supervisors to ensure a consistent approach and high standards across countries.

Suitable directors are crucial for the proper functioning of a bank. Banks must therefore ensure their suitability on an ongoing basis. The ECB acts as a gatekeeper and assesses the suitability of all members of the management bodies of all institutions under its direct supervision.

Without prejudice to the right to bring proceedings before the Court of Justice of the European Union, ECB supervisory decisions including those imposing sanctions and supervisory measures may be reviewed by the Administrative Board of Review at the request of the bank concerned.