A pragmatic SREP delivers appropriate supervision for the crisis

A new blog post by Elizabeth McCaul, Member of the Supervisory Board of the ECB describes the ECB’s flexibility in respect to SREP 2020 exercise.

First, ECB’s actions seek to alleviate the immediate operational burden on banks. Banks need to focus on the continuity of their core operations so that they can be part of the solution to this crisis.

Second, the ECB is now keenly aware of the wide variety of risks facing banks in this challenging macroeconomic environment.

And, third, drawing on some of the most important lessons of the last crisis, the ECB is now keeping a firm hand on the supervisory tiller to avoid any hidden build-up of risks.

This article provides further insight on the approach to 2020 SREP assessments.