19 October 2023
The European Banking Authority (EBA) today published the European Supervisory Examination Programme (ESEP) for 2024, which identifies key topics for heightened supervisory attention across the European Union. The ESEP is aimed at driving supervisory convergence by providing Competent Authorities with a single set of priorities for implementation in 2024.
The EBA selected the following three key topics for supervisory attention for 2024 on the basis of its EU-wide risk analysis, its relevant policy work and the practical experience of competent authorities:
- liquidity and funding risk
- interest rate risk and hedging
- recovery operationalisation
The choice of such topics was supported by structural changes, such as i) the end of the abundant liquidity in the system; ii) the increased interest rate environment; iii) the implementation of the IRRBB package in the EU; iv) lessons learned from the spring bank failures, v) energy and food markets volatility. These topics target aspects that are considered ‘specific’ for the upcoming year compared to the ‘business as usual’.
The specific supervisory attention to these areas will contribute to ensuring the financial resilience of EU institutions, and will ultimately lead to a higher level of supervisory convergence across the EU, also through the implementation of the related policy products.
The EBA will follow up on how these key topics are embedded in competent authorities’ priorities for 2024, and how they form part of their supervisory activities throughout the year. The observations collected will feed into the overall conclusions on the degree of convergence of supervisory practices.
DOCUMENTS
European Supervisory Examination Programme for 2024
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