As simple as possible, but not simpler: ECB pushes to streamline supervision
The European Central Bank (ECB) has set out its plans to simplify banking supervision without compromising resilience. Writing on the Supervision Blog, Sharon Donnery of the Supervisory Board explained how reforms are making supervision more focused, efficient, and risk-based.
At the centre of this drive is a major overhaul of the Supervisory Review and Evaluation Process (SREP). By adopting a multi-year approach tailored to each bank’s risk profile, the ECB aims to sharpen supervisory focus while reducing duplication for both banks and supervisors. Clearer, shorter SREP decisions and faster communication are already in place, with further refinements to capital requirements methodologies expected from 2026.
Technology also underpins this shift, with new IT platforms and analytics improving efficiency, cutting administrative burdens, and strengthening risk detection. The ECB is coupling these changes with a cultural push, encouraging supervisors to concentrate on what matters most and aligning activities to the evolving risk landscape.
For XBRL based digital reporting, this emphasis on simplification without weakening standards echoes a familiar theme: data should be accessible, proportionate, and high-quality, but never at the cost of reliability.
Read the full blog post on the ECB Supervision Blog here.
