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Banking Supervision – ECB Priorities for 2016

The risks associated with business models and profitability, credit risk, capital adequacy, data quality and liquidity are the five priority areas for the supervision of credit institutions in the Euro area in 2016, according to the Single Supervisory Mechanism (SSM), the ECB’s watchdog, who plans to initiate a series of regulatory initiatives in each of these key areas.

Other secondary risks that continue to attract high regulatory attention include the high levels of non-performing loans, the risk of a severe correction in the stock and bond markets after a multi-year rally (potentially impacting adversely the bank portfolios) as well as the risks of corporate governance and business conduct.  Click here for more details.

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