Supervision Newsletter - May 2026
Interview
"Market fragmentation is banks’ real constraint"
Supervision will not pivot away from resilience, says Frank Elderson, Vice-Chair of the ECB Supervisory Board, stressing that the banking union is key to competitiveness. He clarifies that ECB guidance is not law and explains the risks behind Anthropic’s Mythos.
Read the interviewIn focus
Faster decisions, same supervisory standards
The ECB’s new fast-track procedures are speeding up assessments of low-risk own funds reductions and significant risk transfer securitisations. Standardisation and a risk-based approach cut decision times from months to days, while prudential standards remain unchanged.
Article on the ECB's fast-track proceduresFeature
Zeroing in on the EU capital framework
The EU’s bank capital framework is rooted in the global Basel standards, while also reflecting European risks. A comparison with the United States shows that EU rules do not put internationally active banks at a competitive disadvantage – they support resilience and lending.
Feature on the EU capital frameworkKey data
Government exposures high in fourth quarter of 2025
Banks’ sovereign exposures, including derivatives and off-balance sheet items, rose to €3.45 tn, which marks the highest level since the start of the time series in 2018. Since mid-2025, growth was driven mainly by exposures to Italy (up €21 bn) and Germany (up €19 bn).
Explore more data on sovereign exposuresKey data
Non-performing loans (NPL) ratio of smaller banks exceeds 2021 peak
After falling to 2% during 2021-22, the NPL ratio of less significant banks reversed course, climbing to 2.81% by the end of 2025. The increase was largely driven by loans to non-financial corporations and reflects the recent downturn in commercial real estate in some countries.
Explore more figures on less significant institutions- 14 May 2026
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Pedro Machado at PCS 4th Annual Lisbon Symposium, in association with VdA
The ECB representative to the Supervisory Board will give a keynote speech on securitisations in Portugal and Europe, focusing on their evolution amid regulatory and structural transitions.
- 18 May 2026
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Frank Elderson at Sustainability Standards Conference 2026
The Vice-Chair of the Supervisory Board will participate in a panel discussion focusing on sustainability and climate-related challenges, and the role of standards in the financial system.
- 19 May 2026
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Claudia Buch at AFME’s European Financial Integration Conference 2026
The Chair of the Supervisory Board will deliver a speech on the role of banking supervision in supporting European financial integration, with a focus on the EU’s savings and investments union strategy.
- 21 May 2026
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Frank Elderson at University of Oxford
The Vice-Chair of the Supervisory Board will give a presentation on the links between central banking, environmental risks and nature.
- 3 June 2026
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Frank Elderson at Goldman Sachs European Financials Conference
The Vice-Chair of the Supervisory Board will speak about key challenges facing European banks and the evolving supervisory landscape.
- 23 June 2026
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Frank Elderson at UNEP FI Global Roundtable 2026
The Vice-Chair of the Supervisory Board will contribute to discussions on climate-related risks and the role of finance in supporting resilience and sustainable investment.
- 24 June 2026
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Patrick Montagner at A&O Shearman SSM Senior Forum
The ECB representative to the Supervisory Board will talk about complexity in banking regulation.
- 2 July 2026
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Claudia Buch at 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.