What lies on the horizon for Europe’s banks?

How has the pandemic affected Europe’s banks? Do they have the right tools to deal with what lies ahead?

In this episode of The ECB Podcast, our host Katie Ranger explores these questions with insights from discussions at the 2021 ECB Forum on Banking Supervision.

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

Published on 16 November 2021 and recorded on 11 November 2021.

In this episode:

01:41 – What the pandemic has meant for banks

The challenges that the coronavirus pandemic presents to the economy and the support measures put in place by banks.

03:13 – Why supervisors are keeping a close eye on credit risk

How the support measures adopted during the pandemic might affect banks’ credit risk and what we, as supervisors, recommend they do to minimise it.

6:48 – How the climate crisis is relevant for banks

How physical and transition risks affect banks, what the role of banks will be during the transition to a greener economy and how they are doing in assessing climate risks.

11:08 – What is needed to deepen integration in the banking sector

What progress has been made in completing the banking union, how this has been affected by the pandemic crisis and what still needs to be done to deepen integration.

Additional material:

ECB Forum on Banking Supervision 2021: Welcome address by Christine Lagarde, ECB President – YouTube recording, 9 November 2021

https://www.youtube.com/watch?v=6L1maMkK_l0

ECB Forum on Banking Supervision: ECB Forum on Banking Supervision 2021: Conversation with Andrea Enria, ECB Supervisory Board Chair – YouTube recording, 9 November 2021

https://www.youtube.com/watch?v=Z7XnY9en6ag

ECB Forum on Banking Supervision 2021: Credit risk: managing through the pandemic – YouTube recording, 9 November 2021

https://www.youtube.com/watch?v=igMB9ZE4kLc

ECB Forum on Banking Supervision: Climate change: are banks and supervisors prepared? – YouTube recording, 10 November 2021

https://youtu.be/GAw3wKUBlK8

ECB Forum on Banking Supervision: European banking: necessary steps to deepen integration – YouTube recording, 10 November 2021

https://youtu.be/IVIvxh7t6Og

Remarks by Christine Lagarde at the ECB Forum on Banking Supervision, 9 November 2021

https://www.ecb.europa.eu/press/key/date/2021/html/ecb.sp211109_1~6cdc943638.en.html

European Central Bank website

https://www.ecb.europa.eu/home/html/index.en.html

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