The European Central Bank (ECB) unveiled new measures to tackle perceived weaknesses in individual banks in its annual Supervisory Review and Evaluation Process (SREP) results.
The measures are another sign of renewed determination on the part of the single supervisor in Frankfurt to force banks to bolster their protections against financial stress – partly triggered by the collapse of Silicon Valley Bank (SVB) and the emergency rescue of Credit Suisse this March.
Greater focus by the ECB on areas such as business models and risk management – including new threats of daily fines for banks that fall short of expectations – is already fuelling a backlash from banks, who say the ECB risks overstepping its mandate and interfering in banks’ strategic decisions.
related reading
-
Outside Switzerland, European banks largely escaped the banking turmoil last March. That hasn’t prevented supervisors using it as an excuse to ratchet up the pressure.
