European Central Bank (ECB) Supervision is reshaping the industry in Europe in a number of ways. One of the most basic issues is how banks are to respond to this new supervisor given the different nationalities, languages and cultures. We see through the Supervisory Review and Evaluation Process (SREP) a comprehensive review of a bank’s business model and supervisory challenge models of a bank’s capital and liquidity adequacy.

The ECB has proved its capability and willingness to use its supervisory powers, which has influenced the whole value chain of banks: affecting business models, technical infrastructure, and the processes as well as the risk strategy of banks.

The ECB’s supervisory approach is a game-changer for banks. KPMG’s ECB Office offers insights for banks under the new regime.