Two years after the creation of ECB Banking Supervision, Supervisory Board Chair Danièle Nouy and Vice Chair Sabine Lautenschläger talk about key issues for banks in the euro area and how supervision is doing so far on the European level.
So far, one of the important achievements of European banking supervision has been to harmonise the main tool of banking supervision, the Supervisory Review and Evaluation Process (SREP). Banks are now being assessed by the same yardstick across the euro area. This is a marked improvement from complying with supervisory requirements of up to 19 different national authorities.
The increased use of information technology (IT) in all kinds of banking processes, together with the growing danger of cyberattacks, has brought banks’ management of IT risks into sharp focus. Can cyberattacks be detected? Are banks’ infrastructures resilient enough? A stocktaking by the ECB has revealed nine IT risk areas and that risks will remain high for years to come.
The ECB will publish new data on balance sheet composition, profitability, solvency and credit risk by the beginning of December to enhance transparency regarding the banks we supervise. The data, which will be published on our website on a quarterly basis, will have a broader scope and contain more detailed information, including a country breakdown and the banks’ classifications.
In its first two years, the ECB Supervisory Board took 2974 decisions. This included 1734 authorisations, 239 SREP decisions and 295 Own Funds decisions. The significant amount of authorisation procedures was due to the high number of fit and proper decisions, which alone came to 1633.