Thankfully, there is also reason to be hopeful. For each ECB expectation, there is at least one bank – and often many – with good practices. The governance and risk management practices that some banks have started to adopt confirm that what the ECB is asking of banks can be done. As the supervisor, our focus is on the safety and soundness of banks.
Because the problems at SVB soon led the financial market to look at other banks – banks with the same combination of vulnerabilities, like First Republic.