Frank Elderson, Member of the Executive Board of the European Central Bank, stated that European banking supervision is adjusting its approach to cope with an increasingly complex environment. Through a dedicated Risk Tolerance Framework (RTF), supervisors have consciously increased their risk tolerance, focusing on material risks rather than subjecting all risk areas in every bank to intensive scrutiny every year. Additionally, the "Next Level Supervision" initiative has enhanced efficiency, reducing approval times for standardized securitisation transactions from three months to around seven days, cutting stress testing data points by approximately 55%, and shortening capital-related decision approvals to less than six days. Elderson called on all stakeholders, including banks, to embrace this cultural shift towards a more risk-tolerant and agile supervisory environment.