Priorities & risks

Banks should have in place and maintain sound credit standards and risk-based pricing to prevent the build-up of non-performing loans while adjusting to changes in the macro-financial environment.

Banks need to implement the new standardised approach for calculating their minimum capital requirements under the Capital Requirements Regulation (CRR III) consistently and accurately in order to maintain adequate capitalisation.

Banks should effectively assess and manage short, medium and long-term risks stemming from the climate and nature crises, and remedy persistent shortcomings in their risk management frameworks.

Banks need to enhance their ability to prevent, withstand and recover from major disruptions by maintaining resilient operational risk frameworks. They should continue their efforts to address previously identified shortcomings swiftly and effectively and should fully comply with the Digital Operational Resilience Act (DORA).

Banks should strengthen their efforts to remedy material weaknesses identified in their risk data aggregation and risk reporting frameworks in an effective and timely manner and bring them into line with supervisory expectations to support sound risk management and effective decision-making.