The European Central Bank announced on Friday that it will reduce the number of reports it requires banks to submit by nearly one-third and relax its supervisory expectations regarding sound corporate governance, a move made partly in response to industry objections.

This decision by the ECB comes as regulators worldwide are gradually easing some of the stringent measures implemented following the global financial crisis.

In a blog post, ECB Supervisory Board member Frank Elderson stated, "Our goal is straightforward: to ensure our supervisory guidance remains clear, consistent, and realistic within an increasingly complex risk environment."

As part of this initiative, the ECB said it will eliminate 40 out of approximately 130 reports, deeming them "obsolete, superseded, or no longer relevant."

Furthermore, the ECB will downgrade the status of a draft guide outlining its expectations for bank governance and risk culture. This guide covers various aspects of a bank's internal operations, from board member compensation and time commitments to protections for whistleblowers.

Instead, the ECB will issue a non-binding report on good practices.

The ECB stated, "This means that a bank can be fully compliant with the applicable legal framework without implementing any of the good practices described in the guide, provided it has adopted other, more suitable practices."

Other ECB guides, including a sensitive one concerning high-risk loans, are also under review, with the process expected to conclude by the end of this year.