ECB publishes 2018 Annual Report on supervisory activities

Perspectives

ECB publishes 2018 Annual Report on supervisory activities

European Central Bank (ECB) published this March the annual report for 2018. The report presents ECB’s policies and activities in the economic and financial environment during last year.

According to the report, 2018 marked several important events: the publication of the harmonised Supervisory Review and Evaluation Process (SREP) and of the methodology for conducting the SREP for less significant institutions (LSIs), the thematic review on banks’ implementation of IFRS 9, the introduction of supervisory framework for non-performing loans (NPL guidance to all SIs, a framework to address NPL stocks as part of the supervisory dialogue, the addendum to the NPL guidance), continuation of the review of the internal models (TRIM), establishment of a crisis management framework, the SSM Emergency Action Plan. In addition, the ECB announced that will continue to push for improvements to banks’ internal processes for capital and liquidity adequacy (ICAAP and ILAAP), stress testing the resilience to liquidity shocks as well as new measures to examine IT and cyber risks.

This article provides further insight on implementation of Single Supervisory Mechanism (SSM), resolution framework, authorisations, enforcement and sanctioning procedures.

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