On 4 September 2019, the European Central Bank (ECB) published the introductory statement given by its chair, Andrea Enria, at the first ordinary hearing in 2019 at the European Parliament’s Economic and Monetary Affairs Committee.

Among other things, the statement lists the ECB’s work and priorities for the near future. In particular, the ECB will:

• be following up on its guidance on non-performing loans, as well as on recommendations stemming from its targeted review of internal models;
• be conducting on-site missions focussing on trading risk and asset valuations;
• continue to evaluate banks’ credit underwriting criteria and the quality of their internal capital and liquidity adequacy assessment processes;
• monitor the sustainability of banks’ business models, specifically with a view to profitability and the ongoing digitalisation of financial services; and
• continue to monitor closely banks’ vulnerability to IT and cyber-risk.

The statement adds that other key issues for ECB supervisors will be Brexit and the EU-wide stress test. Comprehensive assessments will also continue to increase in number and relevance as banks relocate business to the euro area as a consequence of Brexit and as Member States – Bulgaria, followed by Croatia, apply for close cooperation.