The European Banking Authority has published its 2025 report on supervisory convergence, finding that supervisory practices across the European Union are becoming more aligned but that further convergence is still needed in key areas. The report covers prudential supervision, resolution, consumer protection, digital finance and, until the end of 2025, anti-money laundering and countering the financing of terrorism, and presents supervisory convergence as a way to support a simpler and more consistent EU prudential framework. In prudential supervision, the report says the 2025 European Supervisory Examination Programme was broadly embedded by national authorities, with work centered on banks' resilience to macro-financial uncertainty, digital operational resilience and the transition to Basel III and the revised Capital Requirements Regulation. Common weaknesses included insufficiently forward-looking stress testing, uneven ICT governance and third-party risk management, data-quality problems and operational challenges in implementing CRR3. Pillar 2 practices showed some improvement, but differences remain across jurisdictions in the calibration of Pillar 2 Requirements and Pillar 2 Guidance. In resolution, authorities made progress on bail-in readiness, liquidity planning and valuation data systems, but the report points to persistent gaps in automation, collateral mobilisation, data quality, third-country liabilities and broader end-to-end testing. In digital finance, the EBA supported the rollout of the Markets in Crypto-Assets Regulation and the Digital Operational Resilience Act while identifying continued challenges around ICT dependencies, reporting data quality and crypto-related financial crime risks. Consumer protection work included an EU payment fraud dataset covering more than 6,000 payment service providers, while AML/CFT college monitoring found better cross-border cooperation but continuing weaknesses in risk-based resource allocation and strategic coordination. For 2026, the EBA says it will focus its convergence work on Basel III implementation, advancing resolution testing frameworks, strengthening oversight under DORA and enhancing supervision under MiCA.
European Banking Authority2026-06-29
European Banking Authority publishes 2025 supervisory convergence report highlighting progress and remaining gaps across EU supervision
The European Banking Authority's 2025 supervisory convergence report says EU supervisory practices are becoming more consistent, but gaps remain in Pillar 2 methodologies, digital resilience, Basel III implementation and resolution readiness. It also highlights progress on MiCA and DORA supervision, a new EU payment fraud dataset covering more than 6,000 providers and improved AML/CFT college cooperation. For 2026, the EBA will prioritize Basel III, resolution testing, DORA oversight and MiCA supervision.