Consolidated Supervision

Consolidated supervision is a regulatory approach where financial authorities oversee a group of related companies—such as a bank and its subsidiaries—together as a single entity. This method ensures that the entire organization’s risks and financial health are managed holistically, rather than evaluating each part separately. It helps identify and address potential vulnerabilities that could affect the whole group, promoting stability and soundness in the financial system. Essentially, it’s a comprehensive review to make sure all parts of a financial organization work safely and effectively together.