tweet at 4:04am: ECB's Enria Says credit risk remains high on our agenda as we exit the pandemic A possible deterioration in asset quality calls for supervisory attention. Several early indicators point to potential asset quality deterioration in the future. tweet at 4:04am: NPL ratios in sectors more vulnerable to the impact of the pandemic have also started increasing Says signs of market exuberance call for continued vigilanceEnria: Our supervisory priorities for a healthier banking sector after the pandemic ECB Banking Supervision has today published the SSM Supervisory Priorities for 2022-2024. In this blog post, we look at the concrete areas we want to focus on over the next three years to ensure that banks: (1) emerge from the pandemic healthy, (2) seize the opportunity to address structural weaknesses through digitalisation strategies and enhanced governance, and (3) tackle emerging risks, including climate-related and environmental risks, IT and cyber risks. Credit risk remains high on our agenda as we exit the pandemic Our first priority is to ensure that supervised banks emerge healthy from the coronavirus (COVID-19) pandemic. Banks have proven resilient so far, also owing to unprecedented public support. While our initial expectations on asset quality might have been overly pessimistic, we remain convinced that caution is needed in monitoring and managing credit risk.