Supervision Newsletter - November 2023
"A race car camouflaged as a tanker"
Supervisory Board Chair Andrea Enria says banking supervision has proven it can be agile and fast when needed. In this interview, he also talks about inherent tension with banks, improvements in supervision, scary moments during his tenure and calls for greater integration.Interview with Andrea Enria
IT and cybersecurity: no grounds for complacency
Banks report limited progress in IT risk management. In addition, cybersecurity inspections found that some banks struggle to protect IT assets or identify security risks. The ECB is calling on banks to remedy this.Article on IT and cybersecurity
Post-Brexit stocktake and the way forward
The findings of the ECB’s desk-mapping review suggest that incoming banks will have to boost their local risk management capabilities and improve their internal governance. Banks operating in the EU must retain sufficient control and oversight of their euro area balance sheets.Article on post-Brexit stocktake and the way forward
Suptech: thriving in the digital age
More than a dozen digital tools help European supervisors extract and compare information or streamline and enhance their assessments. The ECB is working towards its vision of supervisors being able to gain access to a bank’s situation in real time in just a few clicks.Article on suptech
Capital levels up in Q2 2023
The CET 1 ratio rose year-on-year from 14.96% to 15.72% for significant banks and from 17.10% to 17.65% for less significant banks. This rise was mostly driven by retained earnings. The statistics for significant banks included debt securities by counterparty for the first time.Supervisory banking statistics
Did you know...
… that ECB Banking Supervision has various enforcement measures designed to compel banks to comply with prudential requirements? These measures include periodic penalty payments. When these are imposed, the bank concerned has to pay a daily amount – up to 5% of its average daily turnover – for every day the infringement continues during a maximum period of six months. Periodic penalty payments may be used, for example, to enforce compliance with the ECB’s supervisory expectations on climate-related and environmental risks. Banks have been asked to comply with these expectations by the end of 2024. If they fail to make sufficient progress, the ECB may – and stands ready to – enforce compliance through periodic penalty payments.
- 16 November 2023
Andrea Enria at the 7th European Systemic Risk Board Annual Conference
The Chair of the Supervisory Board will participate in a panel discussion on banking sector turbulence and the lessons learnt for supervision and regulation.
- 28 November 2023
Elizabeth McCaul at the Financial Times Global Banking Summit
The ECB representative to the Supervisory Board will take part in the session “Regulatory Leaders’ Dialogue: Are we entering a new age of bank supervision?”.
- 30 November and 1 December 2023
Fifth ECB Forum on Banking Supervision
Representatives from ECB Banking Supervision will discuss the state and future of banking and supervision in Europe with high-level policymakers, financial executives, academics and market experts.Fifth ECB Forum on Banking Supervision
- 5 December 2023
Anneli Tuominen at the 22nd European Banking Institute Policy Series
The ECB representative to the Supervisory Board will give a keynote speech before participating in a panel discussion on “Making bank resolution more effective – the CMDI initiative”.
- 7 December 2023
Frank Elderson at the Centre for European Policy Studies
The Vice-Chair of the Supervisory Board will speak about supervisory effectiveness and reflect on how ECB Banking Supervision addresses issues it identifies in banks.
- 11 December 2023
Elizabeth McCaul at the 25th Annual Capital Link Invest in Greece Forum
The ECB representative to the Supervisory Board will participate in a panel discussion focusing on the growth and development of the Greek banking sector and its outlook.
- 12 December 2023
Elizabeth McCaul at the European American Chamber of Commerce, New York
The ECB representative to the Supervisory Board will participate in a panel discussion on risks stemming from intertwined financial markets.
- 19 December 2023
Andrea Enria and Frank Elderson at the press conference on the results of the 2023 SREP cycle
The Chair and Vice-Chair of the Supervisory Board will hold a press conference on the 2023 SREP results and the risks and supervisory priorities for 2024-26.
- 19 January 2024
Elizabeth McCaul at the 12th Institute for Law and Finance Conference
The ECB representative to the Supervisory Board will participate in a panel discussion at the event “Navigating higher rates, volatility and liquidity crises: Finance and Regulation in the New Monetary Order”.
- 13 February 2024
Anneli Tuominen at the Single Resolution Board Annual Conference
The ECB representative to the Supervisory Board will participate in a panel discussion at the Single Resolution Board’s annual conference.