The banking supervision of the ECB returns to warn of the risk, as a result of the Covid crisis, of "a sudden increase in non-performing loans" which are not entirely "now" emerging in portfolios.
This was stated by the chairman of the supervisory board Andrea Enria, illustrating the results of the Srep for 2021, according to which the authorities' attention was "focused on the adequate classification and measurement of risks in bank financial statements and on the degree of preparation to manage promptly debtors in difficulty ".
For this reason, the ECB "communicated a considerably higher number of recommendations to the banks".
The ECB's banking supervision priorities for 2021 are "credit risk management, capital solidity, sustainability of business models and governance": This is what is stated in the press release at the end of the Srep analysis.
ECB supervision has decided to keep "stable" the "overall Srep requirements and guidelines (analysis on equity and risk management ed). This is what is read in a note at the end of the analysis that will be illustrated by President Andrea Enria noting how the results "reflect a previous decision by the ECB to take a pragmatic approach in conducting its main annual activities due to the coronavirus (COVID-19) pandemic.
"Banks - explains Frankfurt - show resilience, but vulnerabilities remain in various areas, particularly in relation to credit risk".