The Chair of the Supervisory Board of the ECB has addressed the European Parliament’s Economic and Monetary Affairs Committee at its first ordinary hearing in 2019.
Comments covered:
- key supervisory priorities for the next year, including
- guidance on non-performing loans,
- on-site missions focusing on trading risk and asset valuations,
- evaluation of banks’ credit underwriting criteria and the quality of their internal capital and liquidity adequacy assessment processes, and
- the sustainability of banks’ business models;
- work on non-performing exposures and Brexit preparedness; and
- regulatory challenges in banking, including the completion of Basel III implementation and the next review of the Capital Requirements Regulation and Directive, and the integration of money-laundering risks into prudential supervisory work.