Montagner details banking supervision reforms and resilience
Patrick Montagner, Member of the Supervisory Board of the ECB, discussed two recent ECB reports on revising banking rules and streamlining supervisory processes. The interview, published on February 3, 2026, focused on safeguarding resilience and enhancing effectiveness.
Dual focus: Rules revision and supervisory streamlining
The ECB published two reports in December 2025, as outlined by Patrick Montagner.
The first, from the Governing Council, explored ways to revise banking rules, emphasizing the preservation of the European banking system's resilience, maintaining supervision grounded in daily contact with banks, and continuing the harmonisation of European rules.
It also stressed the importance of international cooperation through the Basel Committee.
The second report, from the Supervisory Board, aims to make supervisory processes more effective and focused after ten years of experience.
Entitled "Streamlining supervision, safeguarding resilience," this report contains concrete measures within the Supervisory Board's remit, some of which will come into force in 2026. Its goal is to streamline processes, optimize resource allocation, and refocus on the most critical risks.
Agile supervision, predictable outcomes
The push for more agile, judgement-based supervision, initiated by former Chair Andrea Enria, aims to streamline cumbersome practices.
A key reform involves the Supervisory Review and Evaluation Process (SREP), now running continuously to shorten assessment cycles and deliver focused conclusions.
The ECB publicized these efforts to foster a legitimate European debate, especially given policy shifts in the United States.
Predictable supervision is crucial for the ECB, enabling clear dialogue with banks on evolving risks like climate and geopolitical factors, without surprises.
Pragmatic evolution, not revolution
Montagner's interview highlights a pragmatic, evolutionary approach to banking supervision, balancing resilience with efficiency.
The emphasis on predictability and streamlining, while maintaining capital requirements, signals a mature phase of the Banking Union.
This measured stance is crucial for fostering confidence and stability amidst global uncertainties, avoiding disruptive policy shifts.
Source: Patrick Montagner: Interview with l’Agefi
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