ECB outlines broad range of policy, supervisory decisions
The European Central Bank's Governing Council announced a series of decisions spanning financial stability, market infrastructure, and banking supervision. These include the publication of the Financial Stability Review and updates to TARGET Services.
Financial stability and payment system reforms
The Governing Council approved the publication of the May 2026 Financial Stability Review, which includes four special features.
These explore the use of AI in sentiment analysis, the divergence in corporate bankruptcies and non-performing loans, the effects of macroprudential policies on household credit, and exposures to private credit.
Separately, the Council approved a revised T2/Real-Time Gross Settlement (RTGS) pricing policy, effective July 1, 2026.
This policy aims for full cost recovery by 2038 through increased fixed monthly fees for dedicated cash accounts and recalibrated volume-based pricing bands.
Additionally, Guideline ECB/2026/11 was adopted, amending the TARGET Guideline to reflect technical changes, including the integration of the European Payment Council's 'One-Leg Out' Instant Credit Transfer scheme into TARGET Instant Payments Settlement (TIPS) and the new T2/RTGS fee structure.
Supervisory actions and board appointments
The Governing Council approved two reports on good practices for climate and nature risk management and stress testing.
It also authorized the 2025 annual report on Single Supervisory Mechanism (SSM) sanctioning activities, which recorded 370 proceedings and 152 administrative penalties, totaling €57.15 million in fines – the highest in five years.
The ECB confirmed compliance with EBA Guidelines on confidentiality regimes, now updated for MiCAR, and on proportionate retail diversification methods for credit institutions.
Additionally, the Market Infrastructure Board saw its Chair, Thomas Vlassopoulos, re-appointed, and new members named for the 2026-2029 term.
Beyond rates: A central bank's broad remit
This comprehensive list of decisions underscores the ECB's expansive and evolving role beyond traditional monetary policy.
The focus on climate risk, AI in financial analysis, and new digital asset regulations highlights a proactive stance on emerging challenges.
These diverse actions collectively demonstrate the central bank's continuous efforts to maintain financial stability and adapt its operational frameworks.