The reorganisation will facilitate bank-specific supervision in three directorates, according to the business models of supervised banks


Building complex of the European Central Bank as seen from North-West. (Credit: Epizentrum/Wikipedia.)

The European Central Bank (ECB) has unveiled plans to transform the organisational structure of its supervisory arm to facilitate continued effective supervision of banks in the euro area.

The reorganisation includes creating two additional business areas in its banking supervision arm, taking the total to seven. The changes also include the redistribution of tasks between the business divisions.

ECB said that the reorganisation facilitates bank-specific supervision in three directorates, structured according to the business models of supervised banks.

The bank-specific supervision is expected to be supported by risk teams or experts in the subject area.

ECB supervisory board Andrea chair Enria said: “Building on six years of experience, we are adapting our operating model so we can sharpen our risk-focused supervision, increase collaboration across business areas and simplify internal processes.

“The new structure will strengthen the ECB’s role as a prudent, efficient and transparent supervisor for the benefit of all, customers, banks and investors.”

The reorganisation shifts the bank’s focus to risk-focused supervision

ECB said that the reorganisation is supported by six years of experience in European banking supervision and is planned to shift the central bank’s focus towards more risk-focused supervision.

The transformation is expected to strengthen the supervisory strategy and risk function, which is the bank’s second line of defence, to facilitate planning, prioritise supervision and allow consistent treatment of all banks.

The restructuring would strengthen cooperation between bank-specific and thematic supervisory teams, and facilitate consistency in the treatment of banks and transparency in supervisory actions.

Also, the transformation will enable dedicated business areas for activities including supervisory strategy and risk, on-site supervision, and governance and operations.