On 7 December 2021, the European Central Bank (ECB) published its supervisory priorities for 2022-2024.

The ECB has identified three key priorities:

  • Addressing the adverse impacts of the COVID-19 pandemic and ensuring that the banking sector stays resilient. Planned supervisory activities include targeted reviews in the area of credit risk identification, monitoring and assessment, as well as the relevant dimensions of the IFRS 9 provisioning framework.
  • Addressing structural weaknesses via effective digitalisation strategies and enhanced governance. Planned activities include a survey on banks’ digitalisation strategies and targeted reviews of banks’ management bodies’ effectiveness and targeted on-site inspections.
  • Tackling emerging risks. Planned activities include a bottom-up climate risk stress test and the development of best practices on climate stress testing. Other activities include a data collection on banks’ outsourcing registers and targeted reviews and on-site inspections on cyber resilience and IT outsourcing arrangements.

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