In response to questions, Claudia Buch, chair of the Supervisory Board for the European Central Bank (ECB), said that the central bank has worked with the European Banking Federation (EBF) to get a pilot started for 2025 on shortening the period that banks have to apply in advance for synthetic risk transfers (SRT) that provide capital relief.
“We will do this next year and then hopefully speed up our efforts – to the benefit of us, because less resources will go into that, and also to the benefit of the industry. But let me reassure you, we will never lose resilience out of sight. This is given a certain risk that is being transferred and we will also carefully monitor the effects on the financial system, because this is mainly about efficiency – it’s not about weakening resilience,” she said.