Risk and Regulation Channel News: ECB SREP 2023 and Supervisory Priorities 2024-2026

Part 1: Martin Neisen, Carole de Vergnies and Stefan Röth introduce the SREP Results 2023 and Supervisory Priorities 2024-2026

The European Central Bank (ECB) published the results of the annual supervisory review and evaluation process (SREP) 2023. The SREP reflects ECB's general assessment of the supervised banks’ risk profile and the overall viability and sustainability of their business. The results reveal deficiencies identified by the ECB and determines what actions the banks need to take to be better able to effectively manage risks and ensure their business model is prudentially sustainable.

The ECB also published the supervisory priorities for 2024-26, which outline ECB Banking Supervision’s medium-term strategy for the next three years. In this video we shed light on the key messages of the SREP exercise 2023, discuss the major risk drivers and outline the overarching supervisory priorities for the next three years with a focus on the near-term risks to the banking sector and the upcoming challenges for the banks.