What are banking supervisors worried about for 2021? Why are “marriages” between banks a good idea? And how can supervisors help banks to be part of the solution during this crisis? Our host Michael Steen finds answers to these questions in The ECB Podcast.

The views expressed are those of the speakers and not necessarily those of the European Central Bank.

Published on 12 February 2021 and recorded on 9 February 2021.

In this episode:

01:19 – How the coronavirus crisis has affected banks
What the uncertainty during the pandemic has meant for banks, the main risks they are facing, and how banks can be part of the solution this time.

04:50 – How supervisors helped to ensure that bank lending continued during the crisis
What steps governments and regulators took to ensure that credit continued to flow, how those measures helped banks to fulfil their role as lenders and what the risks of those policies are.

06:32 – The supervisory priorities for 2021
A closer look at this year’s priorities: credit risk, capital strength, business model sustainability and governance are the areas that supervisors will look at in 2021.

Further reading:

Supervisory priorities 2021
https://www.bankingsupervision.europa.eu/banking/priorities/priorities/html/index.en.html

Introductory statement to the ECB banking supervision press conference
https://www.bankingsupervision.europa.eu/press/speeches/date/2021/html/ssm.sp210128~78f262dd04.en.html

Overview: The ECB’s response to the coronavirus pandemic
https://www.ecb.europa.eu/home/search/coronavirus/html/index.en.html
https://www.bankingsupervision.europa.eu/home/search/coronavirus/html/index.en.html

European Central Bank website
www.ecb.europa.eu

Banking supervision website
www.bankingsupervision.europa.eu

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