ECB SREP results: banks are expected to hold more capital in 2022

On 10th of February 2022, the European Central Bank issued the results of its Supervisory Review and Evaluation Process (SREP) for 2021 and has announced the end of several capital measures introduced in response to COVID-19.

The findings of this annual assessment indicate that significant institutions have maintained solid capital and liquidity positions, with most banks operating at capital levels above those dictated by capital requirements and guidance.
The results of the 2021 SREP exercise reflect both the resilience of the European banking sector and the challenges that lie ahead.

In this alert you will read more about SREP 2021 key findings and about the key risks identified by the supervisory authorities.