On 18 November 2025, the European Central Bank (ECB) issued the results of its Supervisory Review and Evaluation Process (SREP) for 2025 and its supervisory priorities for 2026-28. The assessment covers 105 banks under ECB supervision. It provides a review of their capital, liquidity, profitability, governance and risk management.

The headline from the 2025 SREP is that overall, banks maintained robust capital and liquidity positions and strong profitability in Q2 2025. The weighted average Common Equity Tier 1, the highest quality of a bank’s capital, stood at 16.1% of banks’ risk-weighted assets. The leverage ratio stood at 5.9%. The total capital ratio was 20.2%.

The ECB’s supervisory priorities include requiring banks to remain resilient to geopolitical risks and macro-financial uncertainties. This includes ensuring that they maintain sound credit standards, adequate capitalisation through the consistent implementation of the Capital Requirements Regulation 3, and that they manage climate and nature-related risks prudently. Another ECB priority is for banks to ensure that they have strong operational resilience and ICT capabilities. This refers to the need for resilient operational risk management frameworks, for remedying deficiencies in risk reporting and data aggregation, and thus having reliable information systems.