ECB streamlines supervisory guidance
The European Central Bank (ECB) is carrying out a major review and simplification of its supervisory guidance for banks, aiming to make it clearer, easier to navigate and more user-friendly.
In a recent blog, Frank Elderson, Member of the ECB’s Executive Board of the and Vice-Chair of its Supervisory Board, laid out progress and next steps. The ECB has now evaluated about 130 supervisory publications, including guides, reports, letters and methodologies. Around 40 were found to be outdated or superseded and have been discontinued.
The ECB is now carrying out targeted updates to publications that need specific clarifications or adjustments to reflect recent regulatory developments. It is also working on in-depth revisions of some of its guides, such as its guidance on governance and risk culture, drawing on feedback from the banking industry and other stakeholders.
The review forms part of the ECB’s “Next Level Supervision” reform agenda, aiming to streamline European banking supervision without compromising banks’ resilience. Looking ahead, the central bank will keep simplification in mind, eventually aiming to create a single consolidated guidebook. It is also strengthening its supervisory culture initiative with upcoming dedicated training. As the blog observes, the ECB’s ambition is not to lower the bar, but to make supervisory dialogue more effective in an increasingly complex risk environment.
Read more here.
