ECB Banking Supervision publishes supervisory priorities for 2017

The European Central Bank (ECB) published on the 15 December 2016 its 2017 priorities for supervising significant banks in the euro area. The main focus would be on the key risks currently faced by banks, such as the need to adapt to financial conditions such as lacklustre economic growth in the euro area and geopolitical uncertainties, while at the same time addressing legacy assets.

As a result, ECB Banking Supervision would focus on business model and profitability risks as well as credit risk – with a focus on non-performing loans – and risk management. These were also priorities in 2016 but supervisors would now focus on new areas within each risk.

+ Three key risk areas remain core priorities for 2017: business model and profitability risks, credit risk with a focus on NPLs and risk management
+ New emphasis on effects stemming from Brexit and competition from the FinTech sector
+ Spotlight also on banks’ outsourced activities and associated risks

European Central Bank: Banking supervision: Banking union http://www.europeansources.info/record/banking-supervision/

ECB: Banking supervision: Supervisory priorities 2017 https://www.bankingsupervision.europa.eu/ecb/pub/pdf/publication_supervisory_priorities_2017.en.pdf

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