Supervisory issues In recent years, once the most critical phase of the COVID-19 pandemic was over, new risk factors have emerged in connection with the escalating geopolitical tensions, the consequences of the energy crisis and the negative effects of climate change.
It has thus become increasingly important for supervisory authorities and for intermediaries to use instruments that can capture potential vulnerabilities at an early stage. This is partly why the supervisory review and evaluation process places particular emphasis – more so than in previous years – on the reliability of internal procedures for assessing capital adequacy and liquidity conditions.