Decisions Taken by the Governing Council of the ECB (in addition to decisions setting interest rates)

In May 2026, significant discussions and resolutions were made by the Governing Council of the European Central Bank (ECB) regarding various critical financial stability and market infrastructure matters.

Macroprudential Policy and Financial Stability

On May 20, 2026, the Governing Council engaged in a thorough examination of the financial stability issues within the euro area, focusing on the latest edition of the Financial Stability Review, set for publication on the ECB’s website on May 27, 2026. This review outlines key vulnerabilities in financial stability while presenting four noteworthy special features. These features include an exploration of advanced artificial intelligence tools for sentiment analysis, an analysis of the rising corporate bankruptcies juxtaposed with low non-performing loan ratios in euro area banks, an assessment of the influence of macroprudential policies on household credit and property prices, and insights into the private credit exposures within the euro area financial system.

Market Infrastructure and Payments

Furthermore, on April 28, 2026, the Governing Council ratified a revised pricing policy for the T2/Real-Time Gross Settlement (RTGS) system, which is set to be implemented on July 1, 2026. The revised policy includes an increase in the fixed monthly fees for dedicated cash accounts alongside a recalibration of volume-based pricing bands. This initiative aims to ensure the full cost recovery of the T2/RTGS by 2038. Additionally, the Market Infrastructure Board has been charged with conducting a comprehensive review of the pricing policy in 2028, with further details anticipated on the ECB’s website.

On May 4, 2026, the Governing Council adopted Guideline ECB/2026/11, amending the previous Guideline (EU) 2022/912 concerning the new-generation Trans-European Automated Real-time Gross Settlement Express Transfer system (TARGET). This amendment highlights several technical updates made to TARGET Services in 2026, notably the integration of the European Payment Council’s “One-Leg Out” Instant Credit Transfer scheme into TARGET Instant Payments Settlement (TIPS), and the mentioned adjustments to the T2/RTGS fee structure effective July 1, 2026. This guideline is expected to be accessible on EUR-Lex shortly.

Advice on Legislation

In matters concerning legislation, on May 12, 2026, the Governing Council adopted Opinion CON/2026/16 at the request of the Dutch Minister for Finance, which pertains to the efficient functioning of cash payment systems. Subsequently, on May 19, 2026, the Governing Council also approved Opinion CON/2026/17, which addresses the reduction of certain charges and fees related to cash withdrawals and other ATM transactions, based on the ECB’s initiative.

Corporate Governance

On May 13, 2026, the Governing Council extended the tenure of Thomas Vlassopoulos as Chair of the Market Infrastructure Board for a further three-year term from June 1, 2026, to May 31, 2029. The Council also appointed new members to the Board from various Eurosystem national central banks, including Marc Lejoly (Belgium), Julian Reischle (Germany), Carlos Conesa (Spain), Elie Lewi (France), Salvatore Luigi Alonzo (Italy), Andreas Neocleous (Cyprus), Petia Niederländer (Austria), and Maria Tereza Cavaco (Portugal). Additionally, the deputy chair will be Inge van Dijk (Netherlands). Members from non-euro area central banks include Peter E. Storgaard (Denmark), Torbjørn Hægeland (Norway), and Christina Wejshammar (Sweden), while Johan Kestens and Jean-Marc Eyssautier represent non-central bank entities. The Market Infrastructure Board is responsible for overseeing the daily operations of TARGET2-Securities (T2S) and the associated TARGET services while engaging with market stakeholders through the governance framework of T2S.

Statistics

On May 13, 2026, the Governing Council gave its approval for the Quality Report 2025 assessing the euro area and national balance of payments and international investment position statistics, allowing for its publication. The report highlights advancements made since the prior report and identifies areas necessitating further improvement. It is available on the ECB’s website.

International and European Cooperation

On May 20, 2026, the Governing Council approved the June 2026 edition of the report concerning the international role of the euro and allowed for its publication on the ECB’s online platform. This report outlines developments related to the use of the euro by non-euro area residents throughout 2025 and is due for release along with a relevant press statement on June 2, 2026.

ECB Banking Supervision

Finally, on April 30, 2026, the Governing Council authorized the publication of two reports curated by the Supervisory Board. The first outlines best practices for managing climate and nature-related risks, while the second addresses key practices for stress testing related to such risks. Both reports are now accessible through the ECB’s banking supervision website.

On June 6, 2026, the Governing Council approved a notification to the European Banking Authority (EBA) confirming the ECB’s adherence to guidelines regarding professional secrecy and confidentiality of third-country authorities. This adaptation includes recent evaluations and emphasizes transparency in supervisory cooperation. Additionally, on May 7, 2026, the Governing Council greenlit the annual report detailing the sanctioning activities of the Single Supervisory Mechanism (SSM) for 2025, documenting 370 sanctioning proceedings whereby 66% were concluded in that year, culminating in administrative penalties totaling approximately €57.15 million, the highest in five years.

As the ECB continues to adapt and respond to the dynamic financial landscape, these resolutions and reports exemplify a commitment to maintaining stability and transparency in the euro area’s financial system.