A few weeks before the SSM officially started, we published a guide describing our approach to supervision and the key features of our organisation. We stated upfront that we would comply with the EBA guidelines on SREP, which provide a fairly detailed approach to how the banks’ risk profiles should be assessed.
Companies that contribute to the fragility of nature, and which are the likely targets of policies aimed at restoring it. Investments in such companies create transition risks, and make the financial sector part of the problem. But it is does not have to be this way. Financial institutions are the enablers of economy activity.