Over the last couple of years, we have launched several targeted actions in this direction. In 2020 we issued the ECB guide on C&E risks and in 2021 we conducted a supervisory review of banks’ approaches to managing these risks based on their own assessments. The ECB has progressively taken C&E risks into greater account in its supervision, as have banks in their business.
2022 will be the year that C&E risks become integrated in the day-to-day activities of our joint supervisory teams, who are in constant contact with banks. These risks will come to form an integral part of our ongoing dialogue with supervised entities and the supervisory review and evaluation process, the SREP. This will ultimately influence banks’ minimum capital requirements.