On 20 October 2023, the European Central Bank (ECB) published a report on sound practices in counterparty credit risk (CCR) governance and management.

The report presents the findings of the targeted review performed in the second half of 2022 on how banks govern and manage CCR. It highlights sounds practices and points to areas where improvement is needed.

The ECB has also published a feedback statement providing an overview of the comments received and its assessment of them. The feedback statement emphasises that proportionality is an overarching principle applicable to all sound practices, while considering the different organisational set-ups, areas of activity and risk profiles of the institutions under the ECB’s supervision.