The supervisory priorities set out the focus areas for ECB Banking Supervision in the year ahead. They are defined annually but can be reviewed at any time if this is justified by risk developments.
Supervisory priorities for 2021
The supervisory priorities are based on the assessment of the key risks and vulnerabilities faced by supervised institutions in the current economic, regulatory and supervisory environment.
The annual risk assessment exercise identifies and assesses the key risks and vulnerabilities expected to affect supervised institutions. ECB Banking Supervision performs the assessment in close cooperation with national supervisors. Supervisors monitor any developments relating to identified risks and vulnerabilities on an ongoing basis with the aim of tailoring and prioritising their actions accordingly. This is part of our dynamic risk-based approach to supervision.
Assessment of risks and vulnerabilities for 2021
Besides defining the key areas of interest for supervisors in the year ahead, the supervisory priorities and the risk assessment provide important input for the Supervisory Review and Evaluation Process.