The European Central Bank just told banks across the eurozone that it’s cutting their paperwork. Significantly.
On June 26, the ECB announced it would eliminate approximately 40 of the 130 reports it previously required from supervised banks. That’s nearly one-third of the total reporting burden, gone. In the same breath, the central bank downgraded a proposed guide on governance and risk culture from a binding expectation to a non-binding report focused on good practices.
What actually changed
The headline move is the reporting cuts, but the governance downgrade arguably matters more. The ECB had been working on a draft guide that would have set specific expectations around how banks structure their internal governance and risk culture. That guide has now been softened into what amounts to a suggestions document.
ECB board member Frank Elderson framed the changes as an effort to keep supervisory expectations “clear, consistent and fit for purpose.”
