ECB details financial stability, payment system changes
The European Central Bank's Governing Council announced a series of decisions covering financial stability, market infrastructure, and banking supervision. These include the publication of the Financial Stability Review, changes to T2/RTGS pricing, and new climate risk guidelines.
Stability risks and payment system evolution
The Governing Council held an exchange of views on euro area financial stability issues, authorising the publication of the May 2026 Financial Stability Review.
This edition provides an overview of key vulnerabilities and includes special features on advanced AI-based sentiment analysis, corporate bankruptcies versus non-performing loan ratios, effects of macroprudential policies on household credit and house prices, and exposures to private credit.
Separately, a revised T2/Real-Time Gross Settlement (RTGS) pricing policy was approved, taking effect on July 1, 2026.
This policy includes increased fixed monthly fees for dedicated cash accounts and recalibrated volume-based pricing bands, aiming for full cost recovery by 2038.
Amendments to the TARGET Guideline were also adopted, reflecting technical changes such as the inclusion of the European Payment Council's "One-Leg Out" Instant Credit Transfer scheme in TARGET Instant Payments Settlement (TIPS).
Supervisory focus on climate and sanctions
The Governing Council did not object to proposals by the Supervisory Board to publish two reports on good practices for climate and nature risk management and stress testing.
These reports are now available on the ECB's banking supervision website.
Furthermore, the ECB confirmed its compliance with EBA Guidelines on the equivalence of confidentiality and professional secrecy regimes of third-country authorities, expanding their scope to reflect new requirements under the Markets in Crypto-Assets Regulation (MiCAR).
The Annual Report on Sanctioning Activities in the SSM in 2025 was also approved for publication, documenting 370 sanctioning proceedings, with 152 administrative penalties imposed, totaling approximately €57.15 million in fines – the highest in five years.
The ECB also confirmed compliance with EBA Guidelines on proportionate retail diversification methods for significant credit institutions.
Routine updates, strategic implications
This compilation of Governing Council decisions underscores the ECB's broad mandate beyond monetary policy.
While many items appear operational, they collectively reinforce the institution's commitment to financial stability and robust market infrastructure.
The detailed reports and regulatory updates provide crucial insights into emerging risks and ongoing supervisory priorities.