ECB-SSM: Expert Group Report – Recommendations On European Banking Supervision

QuickTake

On 17 April 2023, the European Central Bank (ECB), acting in its role as the head of the Single Supervisory Mechanism (SSM) at the heart of the Banking Union, published the results of an external assessment (the Report) ¹ of the Supervisory Review and Evaluation Process (SREP) and welcomed its recommendations to improve efficiency and effectiveness. The Report was drafted by a group of independent experts (the Expert Group) which were appointed in September 2022. ²

As a core element of the SSM, the SREP is an annual process amid which the ECB evaluates the risks which banks might be exposed to and analyses the mechanisms and strategies the banks are implementing to manage those risks. The Report acknowledges that the ECB has developed a harmonised SREP which has contributed to improving the resilience of the European banking sector and helped to promote a level playing field for all "significant institutions". It concludes that the ECB is now in a