ECB: SREP Result 2020 & Priorities for 2021
3 February 2021
On January 28, the ECB issued the SSM Supervisory Priorities for 2021 together with the results of the 2020 SREP exercise. The supervisory priorities for 2021 follow the assessment of the key risks and vulnerabilities in the banking sector. Although the uncertainty regarding the impact of the COVID-19 pandemic remains high in the short to medium term, the ECB plans to proceed with its supervisory work plan for 2021.
The four priority areas for 2021 are: Credit risk management, Capital strength, Business model suitability and Governance. Additionally to the priorities listed above, the ECB announces that supervisors will also focus on the banks’ alignment with the expectations regarding to climate-related and environmental risks, risks from money laundering, cyber and digitalization risks and banks’ preparedness for implementation of Basel III.