European Central Bank's Banking Supervision outlines supervision simplification reforms including a two-week fast-track for low-risk own funds approvals

European Central Bank's Banking Supervision published a contribution by Supervisory Board member Patrick Montagner setting out how it is implementing “simplification” to make supervision more efficient and risk-based without weakening prudential standards or resilience. It points to a comprehensive reform agenda published in December that aims to deliver these changes within the existing legal framework. The reform programme is framed around wider use of technology and a shared supervisory culture, with an emphasis on clearer, more predictable supervisory expectations and reduced procedural complexity where it no longer improves supervisory outcomes. Concrete changes cited include digital and fast-track fit-and-proper processes that have reduced processing times, a dedicated fast-track approval process for low-risk own funds transactions targeting decisions within two weeks once fully operational, and streamlined supervisory reporting by reducing duplication across data collection, aligning regular reporting with stress testing and ad hoc requests, and focusing more on materiality. The contribution also links simplification to deeper European Union integration and harmonisation, arguing that competitiveness is better supported by a more coherent single framework than by lowering capital standards. Next steps include reviewing ECB supervisory guides to further streamline expectations, remove overlaps and improve accessibility.