European Central Bank

Globally, policymakers and industry have been debating the complexity of financial rules and regulations. And asking: are these unnecessarily hampering the competitiveness of euro area banks? Our response to this discussion so far: 𝐓𝐡𝐞 𝐆𝐨𝐯𝐞𝐫𝐧𝐢𝐧𝐠 𝐂𝐨𝐮𝐧𝐜𝐢𝐥 𝐡𝐚𝐬 𝐞𝐧𝐝𝐨𝐫𝐬𝐞𝐝 𝐩𝐫𝐨𝐩𝐨𝐬𝐚𝐥𝐬 𝐨𝐧 𝐬𝐢𝐦𝐩𝐥𝐢𝐟𝐢𝐜𝐚𝐭𝐢𝐨𝐧. Its High-Level Task Force on Simplification has outlined recommendations to simplify EU banking rules. The objective is to reduce undue complexity while maintaining the resilience of the banking system. 👉 Read the press release https://lnkd.in/d3-zxqg4 👉 Find out more about the High-Level Task Force https://lnkd.in/dHJ6SG_s 𝐄𝐂𝐁 𝐁𝐚𝐧𝐤𝐢𝐧𝐠 𝐒𝐮𝐩𝐞𝐫𝐯𝐢𝐬𝐢𝐨𝐧 𝐢𝐬 𝐬𝐭𝐫𝐞𝐚𝐦𝐥𝐢𝐧𝐢𝐧𝐠 𝐬𝐮𝐩𝐞𝐫𝐯𝐢𝐬𝐢𝐨𝐧. A set of reforms reduce complexity for banks and supervisors, and ensure that supervisors have enough capacity to tackle new and emerging risks. The four-part reform agenda looks at banks’ regular health check, as well as at other key supervisory processes. It aims to foster a more risk-based supervisory culture. 👉 Learn more about European banking supervision’s reform agenda https://lnkd.in/d69NXH9Z

The digital euro is not just the latest step in the evolution of our money – it is integral to strengthening Europe’s strategic autonomy in the digital age, ECB Executive Board member Piero Cipollone and European Commissioner Valdis Dombrovskis write in The ECB Blog. Building on the Single Currency Package proposed by the European Commission in 2023, the digital euro is designed to complement cash and ensure Europe’s payment systems remain resilient, inclusive and secure. Preparations are underway for its potential issuance during 2029.

We should protect the resilience that has been built over the past decade, says Supervisory Board Chair Claudia Buch. It is a public good that shouldn’t be traded for short-term convenience.   To this end, a well-designed supervisory framework can be simpler and stronger if it is grounded in empirical evidence and in continuous evaluation.   Read the Chair’s full speech in the comments 👇

Inflation is in a good place, but services inflation is stickier than expected, Executive Board member Isabel Schnabel tells Bloomberg News. Solid domestic demand and fiscal expansion suggest interest rates are likely to remain steady for some time. Find the link to the full interview in the comments 👇

📢 Our latest edition of Supervision Spotlight is here! This edition looks at how banks are using AI for credit scoring and fraud detection to boost efficiency and sharpen decision-making. We outline the key trends and look at the challenges banks face in the drive for strong governance and compliance in this new digital age. Interested? Read the newsletter for the full picture. And subscribe to stay up to date with all things banking supervision.

Are you a recent graduate eager to learn about banking and finance? 🎓 We’re recruiting more than 100 trainees to join our banking supervision teams. Curious about what the role involves? We caught up with trainees Léna TUVACHE and Rustam Ablyaev, who answered questions about the traineeship and how it helped shape their careers. Apply by 15 December! 📅 ⬇️ for more information on the role and how to apply

What could Europe’s demographic shift mean for banking supervision? In his latest blog post, Supervisory Board member Patrick Montagner highlights that:   📊 𝐃𝐞𝐦𝐨𝐠𝐫𝐚𝐩𝐡𝐢𝐜 𝐬𝐡𝐢𝐟𝐭𝐬 𝐚𝐫𝐞 𝐫𝐞𝐬𝐡𝐚𝐩𝐢𝐧𝐠 𝐭𝐡𝐞 𝐞𝐜𝐨𝐧𝐨𝐦𝐢𝐜 𝐟𝐨𝐮𝐧𝐝𝐚𝐭𝐢𝐨𝐧𝐬 𝐨𝐧 𝐰𝐡𝐢𝐜𝐡 𝐛𝐚𝐧𝐤𝐬 𝐨𝐩𝐞𝐫𝐚𝐭𝐞. An ageing population tends to save more, borrow less and favour lower-risk investments. Fewer younger households mean fewer new mortgages and business loans, while a larger retired population means there is greater demand for liquidity and wealth management products. ⚙️ 𝐃𝐞𝐦𝐨𝐠𝐫𝐚𝐩𝐡𝐢𝐜 𝐜𝐡𝐚𝐧𝐠𝐞 𝐚𝐟𝐟𝐞𝐜𝐭𝐬 𝐦𝐚𝐜𝐫𝐨𝐞𝐜𝐨𝐧𝐨𝐦𝐢𝐜 𝐯𝐚𝐫𝐢𝐚𝐛𝐥𝐞𝐬. A shrinking working-age population slows potential growth, while labour shortages could increase wages and compress profit margins. In turn, productivity may suffer if firms invest less or face difficulty replacing retiring workers.   🔍 𝐓𝐡𝐞𝐫𝐞 𝐚𝐫𝐞 𝐩𝐨𝐭𝐞𝐧𝐭𝐢𝐚𝐥 𝐢𝐦𝐩𝐥𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬 𝐟𝐨𝐫 𝐛𝐚𝐧𝐤𝐬’ 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐦𝐨𝐝𝐞𝐥𝐬.  As retirees pay off their debt and less young people borrow, there may be a lower demand for mortgages, putting downward pressure on property valuations. This affects collateral quality and potentially increases loan-to-value ratios. As urban migration increases, deposit bases in certain rural areas may come under pressure. There might also be a rise in demand for digital banking channels, wealth management and retirement planning services. Understanding the implications of ageing populations for banks’ business models, income structures and asset valuations may help ensure that the financial sector remains adaptable as Europe navigates a new demographic era.   Find the link to Patrick Montagner’s blog post in the comments 👇

In the 5th edition of our hackathon series ‘From News to AI Forecasts’, we brought together 64 economists, data scientists and computer engineers from 27 institutions, which included national central banks, banking supervisors and the ESM - European Stability Mechanism. This year’s 24-hour challenge focused on three areas: 📊 Deriving new economic indicators from real-time global news. 🧠 Enriching economic analysis by combining traditional and new indicators. ⚙️ Refining AI time series foundation models to improve economic forecasts. Beyond the new indicators, models, and prototypes generated, the biggest takeaway was a deeper understanding of how AI can enhance medium-term forecasts and the energy that comes from cross-disciplinary collaboration. A big thank you to our jury - Yana Djoneva, João Sousa, Luc Laeven, Christophe Kamps, Joan Paredes and Rafael Garcia Oliva -, to our tech evaluators, and to all ‘players’ for their creativity, dedication, and passion.

When it comes to the risks to financial stability, things seem to have settled down a bit. But with trade tensions, an unpredictable US economic policy, geopolitical issues, a potential AI bubble and the rise of stablecoins, there is plenty to keep an eye on. In the latest episode of The ECB Podcast, our host Paul Gordon speaks with financial stability expert John Fell about the factors affecting financial stability in the euro area. They discuss: 🫧 𝐀 𝐩𝐨𝐭𝐞𝐧𝐭𝐢𝐚𝐥 𝐀𝐈 𝐛𝐮𝐛𝐛𝐥𝐞 𝐢𝐧 𝐬𝐭𝐨𝐜𝐤 𝐦𝐚𝐫𝐤𝐞𝐭𝐬. Some AI company valuations look stretched, and there is considerable leverage behind AI investments. Returns will largely depend on how widely AI is adopted and whether it becomes a general-purpose technology like the railways did. 📈 𝐑𝐢𝐬𝐢𝐧𝐠 𝐟𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐬𝐭𝐚𝐛𝐢𝐥𝐢𝐭𝐲 𝐫𝐢𝐬𝐤𝐬 𝐬𝐭𝐞𝐦𝐦𝐢𝐧𝐠 𝐟𝐫𝐨𝐦 𝐩𝐫𝐢𝐯𝐚𝐭𝐞 𝐜𝐫𝐞𝐝𝐢𝐭 𝐦𝐚𝐫𝐤𝐞𝐭𝐬. Private markets are playing an increasingly significant role in financing AI-related companies and infrastructure, contributing to growing risks in the euro area. 🪙 𝐒𝐭𝐚𝐛𝐥𝐞𝐜𝐨𝐢𝐧𝐬 𝐚𝐧𝐝 𝐭𝐡𝐞𝐢𝐫 𝐫𝐞𝐥𝐚𝐭𝐞𝐝 𝐫𝐢𝐬𝐤𝐬. Despite what the name suggests, stablecoins carry liquidity run risks that, at scale, could affect financial stability. With rapid growth and expanding links to traditional finance, the potential for contagion increases. Want to find out more? Check out the link to the full episode in the comments 👇

In a volatile global environment, it is crucial to pay close attention to risks and vulnerabilities affecting the financial system. We analyse a wide range of risks in our Financial Stability Review, including the impact of trade uncertainties, concerns about AI and linkages between banks and the non-bank financial sector. Swipe left to find out what’s happening in the financial system ⬅️

Did you know that more than one in ten women in the EU experience economic violence? This means, for example, an abuser restricting their access to money or taking away their earnings. 25 November is the UN International Day for the Elimination of Violence against Women. It’s the start of sixteen days of activism aimed at ending gender-based violence in all its forms. The colour orange symbolises hope and a brighter future free from violence against women and girls. To increase awareness, we’ve raised orange flags. There is #NoExcuse for gender-based violence. #OrangeTheWorld #EndViolenceAgainstWomen

Hybrid threats like cyberattacks, economic influence or coercion, and disinformation by state actors have made the risk landscape more complex, says Supervisory Board member Anneli Tuominen. Strengthening banks’ operational resilience, governance and contingency planning is key. Find the link to the full speech in the comments 👇

📢 Our latest edition of Supervision Spotlight is here! This edition looks at how bullet loans – also known as “interest-only loans” – expose property lenders to heightened refinancing risks. We outline good practices for banks to manage the related risks, using observations from our on-site inspections. Interested? Read the newsletter for the full picture. And subscribe to stay up to date with all things banking supervision.

In a fireside chat at the J.P. Morgan European Financials Conference, Supervisory Board member Pedro Machado discusses resilience and innovation in the banking sector. Here are the key takeaways:   𝐖𝐞 𝐧𝐞𝐞𝐝 𝐭𝐨 𝐛𝐞 𝐯𝐢𝐠𝐢𝐥𝐚𝐧𝐭 𝐚𝐛𝐨𝐮𝐭 𝐭𝐡𝐞 𝐩𝐨𝐭𝐞𝐧𝐭𝐢𝐚𝐥 𝐫𝐢𝐬𝐤𝐬 𝐩𝐨𝐬𝐞𝐝 𝐛𝐲 𝐬𝐭𝐚𝐛𝐥𝐞𝐜𝐨𝐢𝐧𝐬. It’s important that we closely monitor how the rise of US dollar-denominated stablecoins could potentially lead to risk spillovers to the European banking sector and financial stability. Without safeguards, we risk being exposed to crises from outside the EU.   𝐁𝐚𝐧𝐤𝐬 𝐦𝐮𝐬𝐭 𝐚𝐝𝐝𝐫𝐞𝐬𝐬 𝐫𝐢𝐬𝐤𝐬 𝐩𝐫𝐞𝐬𝐞𝐧𝐭𝐞𝐝 𝐛𝐲 𝐧𝐨𝐧-𝐛𝐚𝐧𝐤 𝐟𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐢𝐧𝐭𝐞𝐫𝐦𝐞𝐝𝐢𝐚𝐫𝐢𝐞𝐬 (𝐍𝐁𝐅𝐈𝐬). The growth of the NBFI sector requires banks to take steps to mitigate contagion. These include aggregating exposures, identifying correlations, and enhancing stress testing and governance around these risks.   𝐒𝐮𝐩𝐞𝐫𝐯𝐢𝐬𝐨𝐫𝐲 𝐚𝐧𝐝 𝐫𝐞𝐠𝐮𝐥𝐚𝐭𝐨𝐫𝐲 𝐟𝐫𝐚𝐦𝐞𝐰𝐨𝐫𝐤𝐬 𝐬𝐡𝐨𝐮𝐥𝐝 𝐛𝐞 𝐬𝐢𝐦𝐩𝐥𝐢𝐟𝐢𝐞𝐝, 𝐛𝐮𝐭 𝐬𝐡𝐨𝐮𝐥𝐝 𝐬𝐭𝐢𝐥𝐥 𝐞𝐧𝐬𝐮𝐫𝐞 𝐛𝐚𝐧𝐤𝐬 𝐫𝐞𝐦𝐚𝐢𝐧 𝐫𝐞𝐬𝐢𝐥𝐢𝐞𝐧𝐭. Resilient banks are crucial for competitiveness. We therefore need to ensure that supervision remains efficient and proportionate, while at the same time reducing undue complexity. Regulatory harmonisation is an important aspect of simplification, given its positive correlation with cross-border banking. Find the link to Pedro Machado’s full conversation in the comments 👇

We need simple, proportional and coherent rules to boost banks’ competitiveness while sustaining resilience, says Maria Luís Albuquerque, EU Commissioner for Financial Services and the Savings and Investments Union. In in our Supervision Newsletter, she outlines the European Commission’s commitment to simplification and highlights how completing the banking union will foster more integration, allowing banks to benefit from economies of scale. The latest edition also covers: 🎯 𝐆𝐨𝐨𝐝 𝐩𝐫𝐚𝐜𝐭𝐢𝐜𝐞𝐬 𝐟𝐨𝐫 𝐦𝐚𝐧𝐚𝐠𝐢𝐧𝐠 𝐫𝐢𝐬𝐤𝐬 𝐟𝐫𝐨𝐦 𝐛𝐮𝐥𝐥𝐞𝐭 – 𝐨𝐫 “𝐢𝐧𝐭𝐞𝐫𝐞𝐬𝐭-𝐨𝐧𝐥𝐲 – 𝐥𝐨𝐚𝐧𝐬 Bullet loans are a key financing tool in the commercial real estate market. But they come with heightened refinancing risks, especially amid shifting market dynamics and a high interest rate environment. We outline good practices for identifying, measuring and managing the associated risks. ⚙️ 𝐇𝐨𝐰 𝐀𝐈 𝐢𝐬 𝐩𝐫𝐨𝐠𝐫𝐞𝐬𝐬𝐢𝐯𝐞𝐥𝐲 𝐬𝐡𝐚𝐩𝐢𝐧𝐠 𝐭𝐡𝐞 𝐟𝐮𝐭𝐮𝐫𝐞 𝐨𝐟 𝐛𝐚𝐧𝐤𝐢𝐧𝐠 European banks are boosting efficiency and decision-making by using AI for credit scoring and fraud detection. Our latest workshops have revealed relevant trends and challenges, as well as a need for strong governance and compliance. Find the link to the full Supervision Newsletter in the comments 👇

The post-crisis reforms have delivered what they set out to achieve, says Supervisory Board Chair Claudia Buch. More than a decade of analysis shows that they have facilitated a stronger and more resilient banking system without constraining economic growth or hindering lending. A well-designed regulatory framework provides the necessary predictability for investors and banks to plan and innovate. It ensures that European banks remain resilient and well-positioned to support economic growth, even in challenging times. While the capital regulation framework has further strengthened the banking sector, Ms. Buch emphasises that more work is needed. This includes systematic learning with continuous evaluations, stronger supervisory data infrastructure and collaboration between supervisors, central banks and academics. The link to the Chair’s full speech is in the comments 👇

Congratulations to Patrick Amis, Dr. Korbinian Ibel and Thijs van Woerden who have been appointed as Directors General for Horizontal Line Supervision, Systemic and International Banks, and Universal and Diversified Institutions, respectively. They will take on their new positions on 1 March 2026. We wish them the very best for their new roles and look forward to continuing working with them. Read the press release 👉 https://lnkd.in/eX5TPx_n

Euro area banks have solid capital and liquidity positions and strong profitability, our Supervisory Review and Evaluation Process (SREP) – banks’ regular health check – shows. In the past year: 📈 𝐁𝐚𝐧𝐤𝐬 𝐟𝐚𝐜𝐞𝐝 𝐡𝐞𝐢𝐠𝐡𝐭𝐞𝐧𝐞𝐝 𝐠𝐞𝐨𝐩𝐨𝐥𝐢𝐭𝐢𝐜𝐚𝐥 𝐫𝐢𝐬𝐤𝐬 𝐚𝐧𝐝 𝐞𝐜𝐨𝐧𝐨𝐦𝐢𝐜 𝐮𝐧𝐜𝐞𝐫𝐭𝐚𝐢𝐧𝐭𝐲. Tariffs illustrated how quickly geopolitical tensions can materialise as concrete financial risks. So far, banks under our supervision have remained resilient, but they need to stay vigilant amid ongoing challenges. 🛜 𝐃𝐢𝐠𝐢𝐭𝐚𝐥𝐢𝐬𝐚𝐭𝐢𝐨𝐧 𝐜𝐫𝐞𝐚𝐭𝐞𝐝 𝐧𝐞𝐰 𝐨𝐩𝐩𝐨𝐫𝐭𝐮𝐧𝐢𝐭𝐢𝐞𝐬 𝐟𝐨𝐫 𝐛𝐚𝐧𝐤𝐬. Banks should seize these opportunities to stay competitive, while ensuring they have sound governance in place to manage the related risks. ⚖️ 𝐖𝐞 𝐡𝐚𝐯𝐞 𝐛𝐞𝐞𝐧 𝐚𝐜𝐭𝐢𝐯𝐞𝐥𝐲 𝐫𝐞𝐟𝐨𝐫𝐦𝐢𝐧𝐠 𝐬𝐮𝐩𝐞𝐫𝐯𝐢𝐬𝐢𝐨𝐧 𝐭𝐨 𝐛𝐞𝐜𝐨𝐦𝐞 𝐦𝐨𝐫𝐞 𝐞𝐟𝐟𝐢𝐜𝐢𝐞𝐧𝐭, 𝐞𝐟𝐟𝐞𝐜𝐭𝐢𝐯𝐞 𝐚𝐧𝐝 𝐫𝐢𝐬𝐤-𝐟𝐨𝐜𝐮𝐬𝐞𝐝. The steps we’re taking reduce unwarranted complexity while making sure banks stay resilient, and create space for banks and supervisors to adequately respond to evolving risks. Read the SREP press release to learn more 👉 https://lnkd.in/eaE_tS_W Or read the Chair’s introductory statement from the press conference 👉 https://lnkd.in/eV7_tA3z

Our payment habits are changing. With digital payments on the rise, we need to preserve people’s freedom to choose how to pay. We already have cash, card, online transfers – and soon, we could have a digital euro. But what is the digital euro, and how will it work? Will it replace cash? Concerns about data security and government control have sparked debate around the digital euro, often fuelled by disinformation. We focus on the facts as our host Stefania Secola teams up with Aidas Palubinskas from EU Finance Podcast to speak to Executive Board member Piero Cipollone about modernising our money. They explain that: ❌ 𝐓𝐡𝐞 𝐝𝐢𝐠𝐢𝐭𝐚𝐥 𝐞𝐮𝐫𝐨 𝐰𝐢𝐥𝐥 𝐧𝐨𝐭 𝐫𝐞𝐩𝐥𝐚𝐜𝐞 𝐜𝐚𝐬𝐡. We remain committed to ensuring access to cash. 🔎 𝐓𝐡𝐞 𝐝𝐢𝐠𝐢𝐭𝐚𝐥 𝐞𝐮𝐫𝐨 𝐰𝐨𝐮𝐥𝐝 𝐛𝐞 𝐥𝐢𝐤𝐞 𝐜𝐚𝐬𝐡, 𝐛𝐮𝐭 𝐝𝐢𝐠𝐢𝐭𝐚𝐥. The money you currently use for everyday digital payments is issued by private banks. The digital euro would be a public good issued by the central bank, like cash. It would complement banknotes and coins, giving people an additional payment option to choose from. 📊 𝐏𝐚𝐲𝐦𝐞𝐧𝐭 𝐝𝐚𝐭𝐚 𝐰𝐢𝐥𝐥 𝐛𝐞 𝐩𝐫𝐢𝐯𝐚𝐭𝐞 𝐚𝐧𝐝 𝐬𝐞𝐜𝐮𝐫𝐞. Data on payment behaviour will be anonymous, meaning that governments, central banks and other authorities won’t be able to access it. And transaction data will be securely stored. 🧭 𝐓𝐡𝐞 𝐩𝐫𝐨𝐣𝐞𝐜𝐭 𝐢𝐬 𝐦𝐨𝐯𝐢𝐧𝐠 𝐟𝐨𝐫𝐰𝐚𝐫𝐝. The ECB’s Governing Council will not make a decision on whether to issue the digital euro until EU lawmakers have passed the underlying regulation. Check the comments for the link 👇

At this year’s #ECBForum on Banking Supervision, supervisors, bankers and policymakers discussed how banks can stay resilient in times of disruption. Among other things, they talked about: 🔹geopolitics, artificial intelligence and cyber security as some of the main disruptors facing banks 🔹the impact of the digital revolution and whether banks are lagging behind 🔹the risk of a race to the bottom in regulation and supervision Learn more about the event 👉 https://lnkd.in/e-d83xFZ Check out the pictures 👉 https://lnkd.in/eSnFzyBF

📕 The latest Economic Bulletin is out! It presents the economic and monetary information that we base our policy decisions on. In this issue, we cover topics such as: 🔹 record-high support for the euro 🔹 inequality during the inflation surge 🔹 China’s growing trade surplus 🔹 oil prices 👇

Resilient banks are vital for a thriving real economy, says Supervisory Board Vice-Chair Frank Elderson.   We therefore need an efficient regulatory and supervisory framework, while at the same time reducing undue complexities that may hinder competitiveness. Here are the main takeaways from the Vice-Chair’s speech at the #ECBForum on Banking Supervision in Frankfurt. 📈 𝐁𝐚𝐧𝐤𝐬 𝐮𝐧𝐝𝐞𝐫 𝐨𝐮𝐫 𝐬𝐮𝐩𝐞𝐫𝐯𝐢𝐬𝐢𝐨𝐧 𝐚𝐫𝐞 𝐢𝐧 𝐚 𝐡𝐞𝐚𝐥𝐭𝐡𝐲 𝐬𝐭𝐚𝐭𝐞. Euro area banks have become significantly stronger over the past decade, thanks to regulatory guardrails, rigorous supervision and continued improvements in banks’ risk management.   💼 𝐖𝐞 𝐚𝐫𝐞 𝐭𝐚𝐜𝐤𝐥𝐢𝐧𝐠 𝐮𝐧𝐝𝐮𝐞 𝐜𝐨𝐦𝐩𝐥𝐞𝐱𝐢𝐭𝐢𝐞𝐬 𝐢𝐧 𝐭𝐡𝐞 𝐬𝐮𝐩𝐞𝐫𝐯𝐢𝐬𝐨𝐫𝐲 𝐚𝐧𝐝 𝐫𝐞𝐠𝐮𝐥𝐚𝐭𝐨𝐫𝐲 𝐟𝐫𝐚𝐦𝐞𝐰𝐨𝐫𝐤. Our simplification initiatives are focused on reforming the banks’ regular health check, the Supervisory Review and Evaluation Process, as well as streamlining our supervisory processes in our “next-level supervision” project. We have scope to further embrace proportionality, thereby allowing smaller banks that meet clear criteria for size, simplicity and limited trading activity to benefit from simpler, streamlined processes. The current small and non-complex institutions (SNCI) regime is a good starting point for this. 🌱 𝐖𝐞 𝐧𝐞𝐞𝐝 𝐭𝐨 𝐝𝐞𝐞𝐩𝐞𝐧 𝐢𝐧𝐭𝐞𝐠𝐫𝐚𝐭𝐢𝐨𝐧 𝐚𝐧𝐝 𝐫𝐞𝐯𝐢𝐭𝐚𝐥𝐢𝐬𝐞 𝐠𝐫𝐨𝐰𝐭𝐡 𝐢𝐧 𝐭𝐡𝐞 𝐫𝐞𝐚𝐥 𝐞𝐜𝐨𝐧𝐨𝐦𝐲 𝐭𝐨 𝐛𝐨𝐨𝐬𝐭 𝐛𝐚𝐧𝐤𝐬’ 𝐜𝐨𝐦𝐩𝐞𝐭𝐢𝐭𝐢𝐯𝐞𝐧𝐞𝐬𝐬. A more integrated European banking market would facilitate efficiency gains through economies of scale. To this end, we need to complete the banking union and the Single Market and finalise the Savings and Investment Union. The link to the Vice-Chair’s full speech is in the comments 👇 

🌍 Geopolitical risks are heightened, which affects virtually all euro area banks, says Supervisory Board Chair Claudia Buch. Managing the risks stemming from digitalisation is another challenge for banks. So, how can banks and supervisors effectively navigate a world of rising geopolitical tensions, digital disruption and economic uncertainty? Here are the main takeaways from the Chair’s speech at the #ECBForum on Banking Supervision. 🔎 𝐒𝐮𝐩𝐞𝐫𝐯𝐢𝐬𝐢𝐨𝐧 𝐢𝐬 𝐚𝐝𝐚𝐩𝐭𝐢𝐧𝐠 𝐭𝐨 𝐞𝐯𝐨𝐥𝐯𝐢𝐧𝐠 𝐫𝐢𝐬𝐤𝐬. To create space to focus our attention on complex risks, we are reforming supervision to make it more efficient, effective and risk-focused. Our work also promotes good practices, helps to identify vulnerabilities early and ensures banks address them decisively. 🌐 𝐃𝐢𝐠𝐢𝐭𝐚𝐥 𝐢𝐧𝐧𝐨𝐯𝐚𝐭𝐢𝐨𝐧 𝐢𝐬 𝐫𝐞𝐬𝐡𝐚𝐩𝐢𝐧𝐠 𝐭𝐡𝐞 𝐜𝐨𝐦𝐩𝐞𝐭𝐢𝐭𝐢𝐯𝐞 𝐥𝐚𝐧𝐝𝐬𝐜𝐚𝐩𝐞. As competitiveness takes centre stage, there are calls to relax the rules introduced after the global financial crisis. But we need strong global guardrails to avoid a regulatory “race to the bottom”. Common regulatory standards and cooperation among supervisors are vital for safeguarding financial stability. 🏦 𝐁𝐚𝐧𝐤 𝐫𝐞𝐬𝐢𝐥𝐢𝐞𝐧𝐜𝐞 𝐢𝐬 𝐤𝐞𝐲 𝐟𝐨𝐫 𝐜𝐨𝐦𝐩𝐞𝐭𝐢𝐭𝐢𝐯𝐞𝐧𝐞𝐬𝐬. Resilient banks – with strong capital and liquidity positions, sound governance and operational flexibility – are essential for supporting the economy, even under stress. Read the full speech in the comments 👇

Strengthening the Single Market supports simplification, competitiveness and integration, says Supervisory Board Chair Claudia Buch. At the same time, we are committed to reducing undue complexities by reforming the way we supervise banks.    In her statement to the Eurogroup, she also explains that: 🔹 the European banking sector is in a good place, largely thanks to better regulation, better supervision and better risk management 🔹 we are closely monitoring how heightened geopolitical risks are affecting banks’ financial health, and will conduct a thematic stress test next year 🔹 solid profitability offers banks opportunities to boost competitiveness and resilience through digital innovation, but they should manage the associated risks The link to the Chair’s full statement is in the comments 👇

Our monetary policy is in a good place, says Executive Board member Frank Elderson in an interview with Expansión.   Current interest rate levels are appropriate given the prevailing economic environment, with inflation risks broadly balanced.   He also discusses: 🔹 fragmentation of global trade, the increase in defence spending and extreme weather events 🔹 the strong performance of euro area banks in this year’s stress tests, alongside solid growth in their non-interest income 🔹 the distinction between simplification and deregulation, as what we’re doing to make our supervision more efficient, effective and risk-focused The link to the full interview is in the comments 👇 

🤔 What are young people’s hopes, concerns, dreams? Executive Board member Frank Elderson spoke with young Europeans at this year’s #Euro20+ event organised by the Deutsche Bundesbank.   Key topics included: 🏦 how safe banks serve as the backbone of our economic system 🌿 how the climate crisis and nature loss affect our economy 💼 how to navigate career choices and find purpose in your job   Want to learn more about the event? Watch the recording 👉https://lnkd.in/eKxGxJFS 📷 by PicturePartners / Sophie Schüler

The economic costs of climate inaction are rising. Ahead of the 30th United Nations Climate conference, the Network for Greening the Financial System (NGFS), a coalition of 146 central banks and supervisors including the ECB, has issued a declaration to highlight the mounting economic and financial risks of delayed climate action. These risks have implications for our core mandates of price stability and keeping banks safe. The declaration underlines that timely, globally coordinated climate policies can greatly reduce transition costs to clean energy while limiting the long-term economic damage caused by unmitigated climate change. 🔹 As an active NGFS member, the ECB contributes through its roles as monetary authority and supervisor. 🔹 We support the development of science-based analysis, forward-looking tools and open data platforms to help manage climate and nature-related risks. 🔹 The message is clear: the cost of inaction far exceeds the cost of action.

💶 How do payments work across Europe, and how does the ECB ensure they’re safe and efficient? We make sure that: • cash is accepted everywhere and accessible to everyone • digital payments are smooth, safe and reliable • you can trust the system every time you tap, swipe or transfer From cash to cards, we’ve got Europe’s payment systems covered. Watch to see how we’re making payments work for you 👇

Geopolitical tensions. Digitalisation. Climate risks. Impossible to ignore, crucial to manage. How can banks respond to these challenges - and many more - to stay resilient? What must supervisors do to help? Follow the #ECBForum on Banking Supervision on 13 and 14 November to find out. Leading policymakers and experts will come together to talk about: 🔹the main disruptors facing banks 🔹the impact of the digital revolution 🔹geopolitics and banking … and much more! Take a look at the full programme 👉 https://lnkd.in/e-d83xFZ