Under the new mandate, the European Central Bank (ECB) significantly expands its powers. It will now monitor how banks adapt to a carbon-neutral economy over the next three decades. Additionally, the ECB gains the authority to supervise banks' crypto assets, underscoring the growing importance of digital assets like Bitcoin and the need to regulate associated risks, including money laundering.
The ECB also gains authority over the operational leasing belonging to banks. This allows intervention if bank management of climate and environmental risks is found to be ineffective and threatens financial stability. These measures aim to ensure the resilience of the financial system amid global environmental challenges.
Moreover, the ECB must respond to risks associated with achieving the European Union's climate goals. This is based on a preliminary agreement between the European Parliament and the Council of the EU, awaiting formal confirmation. The ECB's expanded powers could ease tensions among European banking regulators regarding the level of pressure on banks concerning climate and ecological issues.
The agreed reform also includes ECB supervision over bank divisions dealing with crypto assets, broadening the scope of ECB control and responding to changes in the financial sector where banks are increasing their involvement in crypto asset operations. The European Union also grants the ECB authority over operational leasing, supplementing its current responsibilities for monitoring banks' financial leasing.
