Financial Stability and Prudential Supervision
We support competent authorities in their efforts to strengthen the stability of the financial system and accelerate financial sector development. We focus on micro-prudential supervision to ensure the soundness and stability of the banking sector. We consider the relevance of the insurance sector for the overall stability of the financial system. When supporting development of supervisory capacities, our attention goes to the harmonization of regulation with international and European standards. In the sphere of ensuring financial stability, we address building a sound macro-prudential framework and toolkit; identify, assess, and address systemic and sector-specific risks; and do the assessment of policies. Learning opportunities address new trends, such as climate, geopolitical, or cyber security risks and their implications on the financial sector.
We will further expand and deepen this area. We will tackle banking supervision looking at the Supervisory review and evaluation process and the ICAAP and ILAAP, in line with the concepts of risk-based supervision. We will also gather banking supervisors around the implementation of international accounting standards IFRS 9 and connected policy recommendations. As it is very relevant in 2023, we will speak with the supervisors of the insurance sector on the implementation of IFRS 17. Under banking resolution, we will be tackling resolution plans and will take a special look at MREL (minimum requirements for own funds and eligible liabilities). As for the financial stability, we will address macroprudential policies and analyse their effectiveness from a methodological perspective. Under many of these topics, we will devote attention to emerging topics such as fintech, digitalization and green finance.