On 8 July 2024, the European Banking Authority (EBA) published a report on convergence of supervisory practices in 2023.

The report covers how the EBA pursued supervisory convergence in 2023 in the context of the Supervisory Review and Evaluation Process and ongoing supervision via various convergence tools at its disposal, and the EBA’s main observations on the respective developments.

Key messages in the report include:

  • The key topics identified for supervisory attention in 2023 were adequately included by most Member State competent authorities, but there is still disparity on the implementation of risk areas like ESG and data aggregation capabilities in the supervisory processes.
  • There is still room for further convergence in the consistent identification and treatment of risks covered by the Pillar 2 requirement across the EU.
  • The EBA’s monitoring of supervisory colleges has confirmed that the annual college cycle is functioning well.

On the same date the EBA issued the European Supervisory Examination Programme (ESEP) for 2025. The ESEP is aimed at driving supervisory convergence by providing Member State competent authorities with a single set of priorities for implementation in 2025. The topics identified as key for 2025 include: testing and adjusting to increasing economic and financial uncertainties; digital challenges, in particular ICT risk management and building operational resilience towards the digital transformation; and transition to Basel III and the EU banking package implementation.