ECB publishes the latest version of its Supervision Letter

The European Central Bank (ECB) has published the latest edition of its Supervision Letter.

The August edition includes a recording of an interview with Ed Sibley, Deputy Governor of the Central Bank of Ireland and ECB Supervisory Board member, discussing the importance of all forms of diversity to the governance, culture and risk profile of banks.

In addition, it includes articles on the following topics:

• how the banking sector is changing fast and sound governance is vital for banks to manage risks and adapt to the new environment;
• new developments in residential real estate lending;
• the ECB’s expectations on how banks should be preparing for brexit, in particular the need to mitigate the risks associated with losing access to the EU single market; and
• the ECB and national supervisors plans to implement a common methodology for the supervision of smaller banks.