Supervisory priorities and assessment of risks and vulnerabilities
We set supervisory priorities annually to determine our focus for the three years ahead. Although our priorities are always revisited once per year, they can be reviewed at any time if justified by developing risks.
We prioritise based on what we consider to be the key risks and vulnerabilities that supervised institutions face in the current economic, regulatory and supervisory environment.SSM supervisory priorities 2023-2025
What are supervisory priorities?
Strengthening banks’ resilience to immediate macro-financial and geopolitical shocks
In the current uncertain environment, it is crucial that we ensure that the banking sector stays resilient and that banks address the impact of external shocks on their businesses.Strengthening banks’ resilience
Ensuring that banks address digitalisation effectively and strengthen their management bodies’ steering capabilities
Banks should address persisting deficiencies in their digital transformation strategies and governance arrangements. Doing so can help make their business models more resilient and sustainable.Digitalisation and steering capabilities
Stepping up efforts to address climate change
Risks associated with climate change are rapidly evolving and this has, among others, far-reaching economic implications. Banks must take action and adequately address these risks. They can also play a vital role in financing the transition to a greener economy.Climate change
How do we use the supervisory priorities and the risk assessment?
Aside from defining key focus areas for supervisors in the years ahead, supervisory priorities and risk assessments provide important input for the next Supervisory Review and Evaluation Process (SREP) and benefit from the outcome of the previous SREP exercise.
Supervisory Review and Evaluation Process (SREP)