The EBA sets examination programme for prudential supervisors for 2022

The European Banking Authority (EBA) published today the European Supervisory Examination Programme (ESEP) for 2022, which identifies key topics for supervisory attention across Europe. The ESEP is aimed at informing prudential supervisors’ planning processes and shaping their supervisory practices.

In line with its mandate, the EBA proactively drives the convergence in supervisory practices through the selection of topics deserving European traction based on its expertise in EU-wide risk analysis and policy development, and its role in supervisory colleges. The practical experience of competent authorities has also been channeled into the examination programme to ensure that the selected key topics indeed reflect the most prevalent supervisory concerns.

The ESEP is also relevant for supervisory colleges as converging practices and methodologies are indispensable in the context of cross-border banking groups.

Five key topics have been identified for supervisory attention for 2022:

• impact of the COVID-19 pandemic on asset quality and adequate provisioning;
• information and communication technology (ICT) security risk and ICT outsourcing risk, risk data aggregation;
• digital transformation and FinTech players;
• environmental, social and governance (ESG) risk; and
• anti-money laundering and countering the financing of terrorism (AML/CFT).

The interaction of the 2022 ESEP with the Union Strategic Supervisory Priorities, the forward-looking considerations, that the EBA is also mandated to set, is also ensured.

The EBA will follow up on how the key topics put forward by the ESEP are i) embedded in competent authorities’  priorities for 2022 as well as ii) reflected in their respective activities throughout the year.

Note to the editors

According to its founding Regulation, the EBA shall contribute to enhancing supervisory convergence across the internal market and it shall play an active role in building a common supervisory culture and consistent supervisory practices throughout the Union.

In the past, the key priorities for prudential supervisors have been put forward by the EBA in the annual convergence plans, as part of the annual Convergence Report. With the stand-alone and thus timely publication of the key topics, further attention is devoted to facilitating competent authorities’  implementation efforts.

The EBA also published today the European Resolution Examination Program (EREP) which is a similar initiative in the resolution domain. While the two examination programmes are independent, they are part of a coordinated initiative to enhance convergence in Europe.