ECB to implement organisational changes to strengthen banking supervision
The European Central Bank (ECB) has just announced a set of internal organisational changes to ensure continued effective and efficient supervision of banks in the euro area and beyond. The reorganisation is expected to be completed in the fourth quarter of 2020.
The organisational changes will include the creation of two additional business areas in the ECB’s banking supervision arm – bringing the total to seven – and the redistribution of tasks across business areas. Bank-specific supervision will be organised according to banks’ business models and will be supported by teams of risk or subject matter experts. Activities such as supervisory strategy and risk, on-site supervision, and governance and operations will have dedicated business areas. The changes will be headcount-neutral and cost-neutral.
With these arrangements, the ECB shifts the focus towards more risk-focused supervision and closer cooperation between bank-specific and thematic supervisory teams, ensuring greater consistency in the treatment of banks and thus fostering the transparency and predictability of supervisory actions.
For more information, read the ECB’s press release.