The European Central Bank's Single Supervisory Mechanism, which supervises the euro zone's largest banks, outlined its priorities for the year.
"Among the key risks identified, business model and profitability risk is ranked the highest, followed by other key risks, the importance of which varies across SSM countries," it said in a document published on its website.
Among them, it cited credit risk and heightened levels of non-performing loans, reversal of the search for yield and conduct and governance risk.
Banks' ability to meet upcoming regulatory capital requirements featured at the bottom of the list.
(Reporting By Francesco Canepa; Editing by Balazs Koranyi)
