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ECB pushes for simpler supervision tied to timely bank remediation

ECB supervisory chair Frank Elderson said banks would face less unnecessary complexity when supervisors focus on material risks and drive concrete, timely fixes for identified weaknesses.

Reported · Written up by our desk · Central Banks

European banking supervision is increasingly emphasizing supervisory effectiveness and timely remediation of findings, according to remarks shared by the ECB.

Frank Elderson said Europe is also pursuing efforts to simplify regulation and supervision while keeping standards strong, and argued that simplification and effective supervision reinforce each other rather than compete.

He said a more focused supervisory dialogue can reduce undue complexity for banks by concentrating on the material risks that affect safety and soundness, making the process more efficient, and ensuring remediation for weaknesses is concrete and delivered on time.

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