Implementation of the harmonised Supervisory Review and Evaluation Process methodology for less significant institutions
The NBB has aligned its Supervisory Review and Evaluation Process (SREP) methodology for less significant institutions (LSIs) with the harmonised LSI SREP methodology of the Single Supervisory Mechanism (SSM). This harmonised SSM LSI SREP methodology was established in 2018.
For LSIs, the SREP is performed by the NBB, in its capacity as first-line supervisor of LSIs. For significant institutions (SIs), this task falls to the SSM. Aside from the first-line supervisor, the methodology used is also different: the LSI methodology is an adaptation of the SI methodology, taking into account the principle of proportionality and the specific needs of (the supervision of) LSIs. The new LSI methodology is being applied for the first time in 2018.
A booklet explaining the harmonised SSM LSI SREP methodology is available on the website of the European Central Bank: https://www.bankingsupervision.europa.eu/banking/srep/2017/html/index.en...