On March 21, the (ECB) published its annual
report on supervisory activities for 2018, which sets out the
ECB’s key achievements during 2018 under the single
supervisory mechanism (SSM).
The ECB has also published a speech on the annual report given
by Andrea Enria, ECB Supervisory Board Chair, at a meeting of the
European Parliament’s Economic and Monetary Affairs
Committee (ECON). Among other things, the
speech sets out the following SSM supervisory priorities for
2019:
- Credit risk: ECB banking supervision
will continue to promote the reduction of the stock of
non-performing loans. As part of a new initiative, the ECB will
assess banks’ credit underwriting criteria with a view to
avoiding excessive risk-taking by banks. The quality of specific
asset class exposures, such as commercial real estate, residential
real estate and leveraged finance, will be closely examined.
