Supervisory review

According to Article 143 §1 (c) of Directive 2013/36/EU competent authorities are required to disclose the general criteria and methodologies they use in the supervisory review and evaluation process referred to in Article 97 (SREP).

For supervisory disclosure purposes, the Guidelines on the Application of the Supervisory Review Process under Pillar 2 are used as a main reference. The Supervisory Review and Evaluation Process (SREP) is one element of the larger Supervisory Review Process, the other elements being the Internal Capital Adequacy Assessment Process (ICAAP) Internal Governance (IG), Risk Assessment System (RAS), Dialog and Measures. For supervisory disclosure purposes, the European banking Authority (EBA) identified four conceptual building blocks of supervisory activity that constitute the core of the SREP. They are common to all competent authorities.

  • Scope of application of SREP (including proportionality)
  • Individual Risk Assessment
  • Review and Evaluation of ICAAP
  • Overall assessment and supervisory measures

The supervisory review table displays the relevant parts of the guidelines together and explanatory notes shedding light on the expected content for each of the four categories.