Every year we look at the challenges banks face and determine what they need to do to cope with them. What did we find in our latest assessment? How are banks faring in these uncertain times?

In this episode of The ECB Podcast, our host Katie Ranger explores these questions with Supervisory Board Chair Andrea Enria.

The views expressed are those of the speakers and not necessarily those of the European Central Bank.

Published on 8 February 2023 and recorded on 31 January 2023.

In this episode:

00:30 – What are the results of our latest assessment of banks?

How Europe’s banks are faring in these uncertain times and what aspects they still need to work on.

02:55 – Our first look at leveraged finance

What leveraged finance is, why it’s important for banks and why our review looked at this topic for the first time.

05:24 – The uncertain economic situation

What the current uncertain situation means for banks, and what the biggest future challenges are for them?

08:07 – The effect of higher interest rates on banks

Why higher interest rates are a positive thing for banks and how they could benefit them in terms of their profitability.

10:18 – Andrea Enria’s last year as Chair of the Supervisory Board

What is the Supervisory Board Chair most proud about achieving during his mandate and what legacy he would like to leave to his successor.

13:22 – Our guest’s hot tip

Additional materials:

Press release: ECB keeps capital requirements steady in 2023, as banks remain resilient, 8 February 2023

https://www.bankingsupervision.europa.eu/press/pr/date/2023/html/ssm.pr230208~8971619db2.en.html

Aggregate results of SREP 2022, 8 February 2023

https://www.bankingsupervision.europa.eu/banking/srep/2023/html/ssm.srep202302_aggregateresults2023.en.html

Speech by Andrea Enria, Chair of the Supervisory Board of the ECB, at the press conference on the results of the 2022 SREP cycle, 8 February 2023

https://www.bankingsupervision.europa.eu/press/speeches/date/2023/html/ssm.sp230208~4ee762ce05.en.html

The ECB Podcast: How healthy are Europe’s banks two years into the pandemic?, 12 February 2022

https://www.ecb.europa.eu/press/tvservices/podcast/html/ecb.pod220212_episode28.en.html

The ECB Podcast: Making sure banks are run by the right people, 10 February 2021

https://www.ecb.europa.eu/press/tvservices/podcast/html/ecb.pod211210_episode24.en.html

The ECB Podcast: What lies on the horizon for Europe’s banks?, 16 November 2021

https://www.ecb.europa.eu/press/tvservices/podcast/html/ecb.pod211116_episode23.en.html

Banking Supervision website

www.bankingsupervision.europa.eu

European Central Bank website

www.ecb.europa.eu

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