The European Central Bank has published its supervisory priorities for the three-year period from 2025 to 2027, placing banks' capacity to withstand severe macro-financial and geopolitical shocks at the centre of its oversight agenda. The document, issued by ECB Banking Supervision on 17 December 2024, sets out the areas in which significant institutions across the euro area are expected to demonstrate the greatest improvement in the near term.
The priorities confirm that the ECB will sustain and intensify two enforcement campaigns: one focused on climate and environmental risk management and the other on the quality of risk data aggregation and reporting.
GEOPOLITICAL RESILIENCE
Supervisors have identified resilience to immediate macro-financial threats and severe geopolitical shocks as the overarching objective.
CLIMATE RISK AND RISK DATA AGGREGATION
On climate and environmental risk, the ECB has confirmed it will continue enforcing compliance with remediation plans through periodic penalty payments for institutions that miss agreed deadlines. The ECB began imposing such payments in 2024.
The ECB also stated it would step up pressure on banks that have not yet met risk data aggregation requirements. The regulator has indicated that potential sanctions are available for persistent underperformers.