Overview of our supervisory activities
We work to keep banks safe and the financial system stable
We make sure that the banks under our supervision properly manage their risks. To do so, we continuously check on banks as part of our day-to-day supervision, conduct regular assessments and ensure banks comply with EU banking regulations. We also conduct regular health checks of banks, enforce supervisory measures and grant licenses for Europe’s banks.
All these activities are carried out in close cooperation with the national supervisory authorities in the participating countries.
Licensing Europe’s banks
We oversee banking authorisations, including the licensing of banks, working closely with national supervisors. In this way, we make sure that only robust banks that comply with all legal requirements can get a licence to operate, which cultivates trust in the banking system.
Learn more about authorisationsMaking sure banks are resilient
As part of the Supervisory Review and Evaluation Process (SREP), we assess the risks banks face and whether they are well-equipped to manage them. The resulting “report card” for banks includes recommendations and, if applicable, supervisory measures that banks need to take to fix any weaknesses.
Find out more about the SREPAssessing banks’ management
We conduct fit and proper assessments of the top individuals running the banks and also look at the overall composition of a bank’s management body to ensure banks have effective management and sound decision-making in place.
Learn more about fit and proper assessmentsInvestigating internal models
We assess whether the internal models that banks use to calculate capital requirements comply with legal requirements. We carry out internal model investigations at the banks’ request or of our own accord.
Find out more about our internal model investigationsEnsuring resilience to shocks
We conduct stress tests to evaluate whether banks are able to cope with financial and economic shocks. The results of these tests help us identify banks’ vulnerabilities early on and guide our supervisory action to address them.
Read about our stress testsTaking action to ensure compliance
We want to make sure that banks comply with supervisory decisions and prudential requirements. If they fail to do so, we have enforcement measures available that can be imposed in the case of ongoing breaches.
Learn about our enforcement measuresHow does European banking supervision work?
Watch our video to find out more