Overview of our supervisory framework
A clear framework underpins our work
Our role as caretakers of Europe’s banks, in cooperation with national supervisory authorities, is clearly outlined in EU banking law. Our supervision is based on methodologies and standards that are derived from banking regulations and policies. It also takes into account the changing risks and priorities banks face.
Supervisory priorities and risks
Each year, we identify the main risks we expect banks to face in the coming three years. The results of banks’ annual health checks are a major factor in identifying these focus areas, and they help us decide how to allocate resources and plan our activities.
Read more about supervisory risks and prioritiesThe basis for our supervision
We work within a transparent, clearly defined legal and policy framework. Our supervisory guidance documents, for example, explain how we carry out our supervisory work and outline what we expect from the banks we supervise.
See our supervisory policy documentsWorking together for Europe’s banks
Together with national supervisors, we directly supervise significant banks, usually through Joint Supervisory Teams. These teams ensure supervisory practices are consistent across banks by conducting ongoing supervision, proposing and implementing assessments and carrying out on-site inspections.
Learn more about Joint Supervisory TeamsEnsuring compliance
We make sure banks comply with supervisory decisions and prudential requirements. For this purpose, we have a range of tools available to us to get banks to act – from recommendations to binding measures and sanctions.
Check out our supervisory measuresPreventing and managing crises
If a bank is in trouble, it’s crucial that supervisors intervene as early as possible and coordinate their responses effectively. This helps preserve financial stability and minimises reliance on public funds.
Learn more about crisis managementThe role of national supervisors
One of our roles at the ECB is to oversee how the relevant national competent authorities supervise less significant financial institutions. We support them in their day-to-day oversight and encourage them to apply consistent practices, while also tailoring their approach to each bank.
Find out what makes a bank significant