ECB’s Elderson: Will Use Supervisory Toolkit to Ensure Bank Compliance

26 September 2024

By Isabel Teles – FRANKFURT (Econostream) – European Central Bank Executive Board member Frank Elderson on Thursday said that the ECB Supervisory Board would monitor banks' approach to risk-taking and be ready to act if they failed to observe the guidelines.

Speaking at an event on the ECB Guide on governance and risk culture, Elderson said, according to a text provided, ‘Going forward, our supervisory teams will continue to keep a close eye on the progress made by each bank. If we see that critical findings are not remediated in a timely manner, we will use all the measures in our supervisory toolkit to ensure compliance.’

Banks still needed to improve the alignment of their culture to prudent risk-taking, he said.

‘Effective management bodies and sound risk culture are more important than ever, especially in the current risk environment, in which banks are facing economic, competitive, and geopolitical headwinds’, he said.