On 27 October 2022, the European Banking Authority(EBA) published the 2023 European Supervisory Examination Programme (ESEP) for Prudential Supervisors. The ESEP is part of an annual cycle and contributes to enhancing supervisory convergence in the EU by providing common directions and focus areas for supervisors, which helps them shape their prudential supervisory priorities and respective practices.

All competent authorities are expected to pay close attention to the key topics put forward by the 2023 ESEP when developing their 2023 supervisory priorities and supervisory examination programme for

the institutions that they supervise and implement these key topics in their supervisory activity throughout the year, taking into account the principle of proportionality. Colleges of supervisors are also expected to implement these key items in their work and discuss the relevant supervisory assessments.

The selection of key topics for supervisory attention in 2023 is based on the EBA’s EU-wide risk analysis, the EBA’s relevant policy work and the practical experience of competent authorities. The four key topics for 2023 detailed in the paper are:

  • macroeconomic and geopolitical risks;
  • operational and financial resilience;
  • transition risks towards sustainability and digitalisation;
  • money-laundering and terrorist financing risks in the supervisory review and evaluation process and internal governance/controls.