On 31 March 2022, the European Central Bank (ECB) published its 2021 Annual Report.

In her foreword to the Annual Report Christine Lagarde, President of the ECB, mentions that the COVID-19 pandemic has led to more fundamental changes in the landscape in which banks operate. She states that digitisation has accelerated and the urgency to tackle climate change has increased. Long-standing issues related to weak profitability and overcapacity could limit the ability of some banks to adapt and stay competitive in facing the digital and green transitions.  In response to these challenges, banks need to improve their cost efficiency and refocus their business models towards resilience and longer-term value creation including making further progress in embedding climate-related and environmental risks into their existing strategies and risk management processes. Banking Union also needs to be completed so that a diversified financial sector helps unlock a large pool of private investment in Europe.

Also on 31 March 2022:

  • The ECB published its response to the European Commission’s call for advice on the review of the EU macroprudential framework.

There was published in the Official Journal of the EU, Decision (EU) 2022/514 of the ECB of 1 March 2022 on the total amount of annual supervisory fees for 2021.