SREP Results: Risk & Regulatory Priorities and practical Implications for Financial Institutions

Navigating the path ahead – part 1/3

In mid-December last year, the European Central Bank (ECB) published the results of the Supervisory Review and Evaluation Process (SREP) 2024. The SREP results provide valuable insights into the current state of the banks supervised by the ECB in the eurozone as well as the evolving supervisory priorities and expectations for financial institutions.

While the results once again highlight strong capital and liquidity positions across the sector, downside risks underscore the need for cautious supervisory assessments. Geopolitical risks remain a critical focus, given that such risks often go unpriced in financial markets until they materialize, with their full impact extending beyond banks’ medium-term capital planning horizons. Meanwhile, credit and operational risks — particularly cyber resilience —continue to draw significant attention, alongside supervisory measures. Other key priorities, such as internal governance (notably the effectiveness of management bodies) and deficiencies in risk data aggregation and reporting, are expected to remain central themes in the supervisory agenda.

Our brochure, part of a 3-step series, offers a concise summary of the key takeaways from the ECB’s Aggregated SREP Results and a forward-looking view on supervisory focus areas and their implications for financial institutions. In the first part, we take a glance at the SREP results for 2024. Browse through our brochure and find out more. Next week, we will take a look at the evaluation for small and medium-sized banks, so-called LSIs (less significant institutions). Finally, in the third part, we will present the ECB's supervisory priorities for the years 2025 to 2027 and their implications on institutions.

Our goal: to provide you with actionable insights to navigate through an evolving regulatory landscape where robust risk management serves as a strategic enabler.