Chair of ECB’s supervisory board, Danièle Nouy, has given a speech on “The Banking Union: A First Résumé” at the European Supervisor Education Initiative Conference “Financial supervision in Europe – on the right track?” Ms Nouy gave an overview of ECB’s likely supervisory priorities during 2016 in its role under the single supervisory mechanism (SSM). These include:
- assessing the viability of banks’ business models and profit drivers;
- assessing risks to banks, including credit risk (focusing on non-performing exposures and concentrations of exposures in areas such as real estate) and IT and cybercrime risks arising from technological developments; and
- participating in the EU-wide stress test that will be co-ordinated by the EBA in the first half of 2016.