Supervision Newsletter - November 2025
Interview
"Preserving resilience while streamlining execution"
The EU needs simple, proportional and coherent rules to boost banks’ competitiveness while sustaining resilience, says Financial Services Commissioner Maria Luís Albuquerque in an interview. She also urges to complete the banking union and reduce fragmentation to unlock economic growth.
Read the interviewFeature
Bullet loans: on-sites insights
Interest-only loans expose property lenders to extra refinancing risk. In recent years, on-site inspections have focused on how leading banks define, measure and manage this risk, yielding fresh insights into valuations, financial sponsors and board oversight.
Article on bullet loansIn focus
AI’s impact on banking
European banks are boosting efficiency and decision-making by using AI for credit scoring and fraud detection. The ECB’s latest workshops reveal trends, challenges and the drive for robust governance and compliance in this new digital age.
Article on AI in bankingKey data
Non-performing loans stable in 2025
Despite differences across regions, ECB-supervised banks’ non-performing loan (NPL) stock was stable in early 2025 after rising in 2024. The NPL ratio for non-financial corporate loans backed by property held steady at 4.6%.
Explore more data on NPLsKey data
Smaller banks’ net interest margin down to 2023 levels
After standing above 2% throughout 2024, less significant banks’ net interest margin decreased to 1.86% in the first half of 2025 to levels two years ago. This was driven by a large drop in net interest income, while total assets remained largely stable.
Overview of less significant institutions- 28 November 2025
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Patrick Montagner at 12th Annual Institute of International Finance Colloquium
The ECB representative to the Supervisory Board will provide keynote remarks on how banking supervision is expected to evolve in the future, focusing on tools and long-term transformative trends.
- 2 December 2025
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Claudia Buch at 2025 ESMA Data Day
The Chair of the Supervisory Board will discuss a roadmap for streamlining processes, fostering proportional oversight and reducing redundant requirements.
- 9 December 2025
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Claudia Buch at ECB-BIS-CEPR Banking Supervision Conference
The Chair of the Supervisory Board will give a keynote speech on the banking sector’s competitiveness and operational effectiveness.Conference programme
- 10 December 2025
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Sharon Donnery at ECB-BIS-CEPR Banking Supervision Conference
The ECB representative to the Supervisory Board will chair a discussion on competition in the banking sector, technological innovations and the future of banking.Conference programme
- 18 December 2025
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Claudia Buch at DIW Berlin - Halle Institute for Economic Research Conference
The Chair of the Supervisory Board will discuss the interaction between research insights and real-world policy outcomes.