Sharon Donnery, Deputy Governor of the CBI and Chair of the ECB’s High Level Group on NPLs, speaks about the task of providing guidance to banks to help them tackle their NPL portfolios in a prudent and sustainable way.
The ECB’s Targeted Review of Internal Models seeks to reduce unwarranted variability of risk-weighted assets by checking whether banks correctly apply their Pillar 1 internal models when calculating their own funds.
The ECB’s annual evaluation of potential risks to the euro area banking system shows how low economic growth corrodes asset quality and hampers banks’ capacity to provide new lending.
The new accounting standard, IFRS 9, introduces major changes for the accounting of financial assets, including the timely recognition of credit loss provisions and the development of robust internal controls.
The ECB has published the second Supervisory Banking Statistics. They include standardised information on capital adequacy, risk exposure composition and asset quality, as well as the solvency and leverage ratios of the banks it supervises.
In 2016, ECB Banking Supervision completed 148 on-site inspections, which are in-depth investigations of risks, risk controls and governance with a pre-defined scope and time frame on the premises of banks. Another 37 on-site inspections continue into 2017.