The European Central Bank (ECB) assumed responsibility for banking supervision in 2014, as part of the establishment of the Single Supervisory Mechanism. Its mission in this regard is to contribute to the safety and soundness of the banking system. There are about 120 banking groups in the euro area under the ECB’s direct remit, while other banking groups are supervised by national supervisors in close co-operation with the ECB.
This audit assessed the operational efficiency of the management of the ECB in relation to one specific supervisory task: crisis management. We find that the ECB has established a substantial framework for crisis management. However, there are some design flaws and signs of inefficient implementation that should be addressed.
We make a number of recommendations relating to making better use of recovery plan assessments and developing operational guidance for crisis management activities and enhance management reporting systems.