The EBA publishes its 2024 Report on supervisory convergence

The European Banking Authority (the EBA) today published its annual Report on convergence of supervisory practices for 2024 across the European Union (EU). The Report details the EBA’s extensive efforts to strengthen the alignment of supervisory approaches across Member States and across all dimensions of its activities: prudential, resolution, consumer protection, digital finance and, until the end of 2025, anti-money laundering/countering the financing of terrorism (AML/CFT). This is also a first step in implementing the recommendations set out in the EBA’s Report on the efficiency of the regulatory and supervisory framework. Going forward, the EBA will further deepen its focus on supervisory outcomes to ensure consistent and robust supervision across the EU.

Key highlights

In the area of prudential supervision, the EBA’s European Supervisory Examination Programme (ESEP) for 2024 focused on liquidity and funding risk, interest rate risk and hedging, and recovery operationalisation. The Report notes stable risk levels across these areas, while identifying ongoing challenges such as data quality, stress testing scenarios, and modelling assumptions. The EBA will continue to monitor risks related to online deposit platforms and compliance with Supervisory Outlier Tests (SOTs) in 2025.

On resolution and crisis management, significant progress has been made in operationalising resolution tools, particularly the bail-in mechanism in cross-border environments. The EBA highlights improved coordination among authorities and stakeholders, enhanced management information systems, and ongoing efforts to address challenges in data quality and legal recognition of bail-in actions.

On digital finance, the EBA prioritised preparations for the implementation of the EU’s Markets in Crypto-Assets Regulation (MiCA), focussing on the supervision of asset reference token (ART) and e-money token (EMT) issuers. It also developed an EU-wide supervisory handbook and coordinated workshops to ensure convergence in supervisory approaches from the outset.

In the area of consumer protection and AML/CFT, the Report notes improved cooperation and risk-based supervision among national authorities, with notable progress made through AML/CFT college monitoring and implementation reviews. The EBA is preparing for the transition of AML/CFT supervisory responsibilities to the new EU Anti-Money Laundering Authority (AMLA) at the end of 2025.

On cross-cutting activities, the EBA continued to support convergence through peer reviews, Q&As, breach of Union law investigations, and training programmes for competent authorities. In 2024, the EBA delivered 23 courses to over 3,000 participants, thus strengthening supervisory skills and promoting best practices across the EU.

Legal basis, background and next steps

This annual Report is a first step in implementing recommendation 17 of the EBA’s report on the efficiency of the regulatory and supervisory framework (EBA/REP/2025/26) in which the EBA committed to providing a more detailed account of supervisory convergence in the EU, building on a number of initiatives and efforts it has already engaged into with its members. The focus of the EBA’s work may shift on ensuring proper implementation of the existing rulebook through supervisory convergence action.

In line with Article 1(5)(g) and 29 of its founding regulation, the EBA contributes to enhancing supervisory convergence across the European Union and plays an active role in building a common supervisory culture and ensuring the consistent application of the Single Rulebook.

In the context of the Supervisory Review and Evaluation Process (SREP), the EBA annually reports to the European Parliament and the Council on the degree of convergence of the application of the SREP and supervisory measures as mandated by Article 107 of the Capital Requirements Directive (CRD).

With the Single Rulebook now well established, the EBA will gradually increase the importance of its convergence work relative to policy development. The Authority remains vigilant in addressing emerging risks and ensuring the stability and integrity of the EU banking sector.