Competent authorities shall disclose in the following section the general criteria and methodologies they use in the review and evaluation referred to in Article 124 (Supervisory Review and Evaluation Process) of Directive 2006/48/EC.
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 conceptual building blocks of supervisory activity that constitute the core of the SREP have been identified. They are common to all competent authorities: i Scope of application of SREP (including proportionality) ii Individual Risk Assessment iii Review and Evaluation of ICAAP iv 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.