Supervision Newsletter - August 2025
Interview
"Strengthening the framework for managing bank crises"
Credible resolution mechanisms are a key component of effective supervision, says Supervisory Board member Pedro Machado. He explains why the agreement to reform the crisis management and deposit insurance framework is a breakthrough and he explains its focus on smaller banks.
Read the interviewFeature
Extinguishing sparks before the fire: credit crisis managed well
Small and medium-sized enterprises are often hit early during crises. Effective early warning tools and sector-based risk management are vital for banks that lend to these firms. However, inadequate data and IT infrastructures can make managing these risks harder for some banks.
Article on the management of credit crisesIn focus
Evolving supervision of internal models
The ECB's guide on internal models has been updated to reflect changes in regulation and clarify expectations – for instance on the use of machine learning. Banks should continue to simplify their model landscapes while keeping their strategies and business models consistent.
Article on internal modelsKey data
Significant banks started 2025 with strong capital levels
The total capital ratio for banks reached 20.28% in the first quarter of 2025, as their total capital amount increased by 1.76% from the previous quarter. This is the highest total capital ratio reported since 2015.
Explore our new interactive reports with enhanced customisation options- 2 September 2025
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Frank Elderson and Pedro Machado at ECB Legal Conference 2025
The Vice-Chair of the Supervisory Board and the ECB representative to the Supervisory Board will discuss how non-majoritarian institutions are a constitutional component of western democracies.
- 9 September 2025
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Patrick Montagner at Association Europe-Finances-Régulations
The ECB representative to the Supervisory Board will give a presentation on how supervisory practices adapt to emerging risks, technological advancements and the evolving financial landscape.
- 23 September 2025
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Claudia Buch at Finanzmarktaufsicht’s 16th annual supervisory conference
The Chair of the Supervisory Board will discuss how effective and efficient supervision contributes to maintaining stability in uncertain times.
- 30 September 2025
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Pedro Machado at S&P Global Ratings’ European Financial Institutions Conference
The ECB representative to the Supervisory Board will deliver a keynote address on the challenges currently facing European financial institutions and the opportunities arising in an evolving financial landscape.
- 8 October 2025
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Claudia Buch, Frank Elderson and Anneli Tuominen at the Finantsinspektsioon conference
The Chair, Vice-Chair and ECB representative to the Supervisory Board will discuss the EU’s competitiveness, the rule of law as well as cyber risks and operational resilience.
- 13 October 2025
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Claudia Buch at a regular European Parliament hearing
The Chair of the Supervisory Board will give an introductory statement on banking supervision at a hearing before the European Parliament's Committee on Economic and Monetary Affairs.
- 14 October 2025
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Sharon Donnery at Bloomberg Global Regulatory Forum 2025
The ECB representative to the Supervisory Board will join a panel discussion on the expanding global regulatory agenda and its implications for the financial sector.
- 22 October 2025
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Claudia Buch at Frankfurt School of Finance and Management
The Chair of the Supervisory Board will speak on the key measures of the post-crisis financial sector reforms and the role of incentives in promoting stability and growth.