The European Central Bank will modify its annual bank evaluation process to make it more compatible with changes in the operating environment of lenders, ECB supervisor Claudia Buch said in a blog post on Tuesday.

"The SREP will be adapted to increase efficiency and effectiveness, building on and going beyond changes that have been implemented in recent years, such as a new risk tolerance framework," Buch said, referring to the Supervisory Review and Evaluation Process.

"Changes will be implemented gradually, starting in the second half of 2024, and will be finalised for the 2026 SREP cycle," she said.

(Reporting by Balazs Koranyi)