ECB Bank-Crisis Management Needs Improvement, Auditors Find

Improved coordination needed with euro-area resolution agency
European Court of Auditors issues report on ECB bank oversight

The stars of the European Union (EU) sit on banners flying outside the European Central Bank (ECB) headquarters stands in Frankfurt, Germany, on Thursday, July 20, 2017. Frankfurt has emerged as a winner of the Brexit vote, with Standard Chartered Plc, Nomura Holdings Inc., Sumitomo Mitsui Financial Group Inc. and Daiwa Securities Group Inc. picking the city as their EU hub in recent weeks.Photographer: Krisztian Bocsi/Bloomberg

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By Patrick Henry

January 16, 2018 at 10:30 AM UTC

Updated on

January 16, 2018 at 2:11 PM UTC

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The European Central Bank should upgrade its procedures for handling bank crises by improving its response to the most urgent cases and by streamlining its coordination with the euro-area bank-failure authority, according to the European Court of Auditors.

“The ECB’s operational framework for crisis management has some flaws, and there are signs of inefficient implementation,” the ECA said in a report published on Tuesday. The EU auditors made a series of recommendations with target dates for implementation stretching into next year. The ECB has accepted most of the recommendations, the auditors said.