News & Press
The EBA consults on revised Guidelines on supervisory review and evaluation process and supervisory stress testing
The European Banking Authority (EBA) today launched a public consultation on its revised Guidelines on common procedures and methodologies for the supervisory review and evaluation process (SREP) and supervisory stress testing. The revision forms are part of the EBA’s ongoing efforts to simplify and enhance the efficiency of the EU supervisory framework, while supporting a risk-focused and effective supervision.
Consultations
Consultation on revised Guidelines for common procedures and methodologies for the supervisory review and evaluation process (SREP) and supervisory stress testing
Final Q&As
Question ID: 2025_7363
How should exposures to institutions be treated under Credi Risk Standarised Approach, if such institutions have been waived of individual capital requirements? Shall these exposures be assigned to grade C, or can the level of compliance with capital requirements be assessed by taking consolidated requirements as reference?
Question ID: 2025_7470
Entity A issues a secured note designed specifically to remove any material positive correlation between the value of the note and the credit quality of its issuer (entity A). The note is secured by assets uncorrelated to entity A. In legal structure I, entity A deposits the assets with a third-party custodian trust account, pledged to the note holders. In a variant legal structure II, entity A sells the assets to a SPV, which has been setup by entity A for that sole purpose; the SPV then issues a guarantee to the noteholders, backed by the assets it holds.
Bank B enters into a reverse repo with entity A, where it lends cash to entity A and receives the secured note as collateral.
From bank B’s perspective, does such secured note qualify as eligible collateral under CRR article 207(2) when:
- the secured note is secured by the assets held in a third party custodian trust account, pledged to the noteholders (legal structure I)?
- the secured note is guaranteed by a SPV holding the assets (variant legal structure II)?