DB plans, which are more common in older and larger firms, promise workers a stream of benefits during retirement, and companies that sponsor them are required by law to set aside sufficient funds to cover the payments they have promised to their workers.
In doing so, my approach to supervision will be based on three main pillars. The first pillar is to transition to a more forward-looking supervision. European banking supervision has been instrumental in tackling the legacies of the crisis: since 2014 stocks of non-performing loans, or NPLs, have declined by almost 50% and bank capital has increased significantly.