On-site inspections, off-site controls, measures on capital and liquidity, provisions on banks’ by-laws and managers’ compensation, and rules and controls for transparency and correctness in dealings with customers are all shaped by the assessment of the risks to which intermediaries are subject.
Following the coordinated exercises conducted last year by the European supervisory authorities, a new round of stress testing of the major EU banks has begun in recent weeks. The results will be released by the end of June.