Consultation on guidelines for common procedures and methodologies for the supervisory review and evaluation process (SREP)

  • Consultation
  • 20 OCTOBER 2014
  • EBA/CP/2014/14

The European Banking Authority (EBA) launched today a consultation on its draft Guidelines for common procedures and methodologies for the supervisory review and evaluation process (SREP). These guidelines will be applied in the supervision of all institutions across the Union and represent a major step forward in forging a consistent supervisory culture across the single market.  The guidelines provide a common framework for the work of supervisors in their assessment of risks to banks’ business models’, their solvency and liquidity.  These guidelines will be a key component of the EU Single Rulebook aimed at improving the functioning of the internal market, including a sound, effective and consistent level of regulation and supervision in the banking sector. The consultation deadline has been extended until 20 October 2014.

The guidelines hinge on four main components: (i) business model analysis; (ii) assessment of internal governance; (iii) assessment of risks to capital and adequacy of capital; (iv) assessment of risks to liquidity and adequacy of liquidity.  The assessment will be summarised in a common scoring and will lead to a consistency in setting supervisory requirements to hold additional capital and liquidity resources as needed.

The guidelines are addressed to all competent authorities across the Union, including the SSM, who will ensure all EU institutions, including cross-border banking groups operating both within and outside the Eurozone, apply them when assessing risks as well as capital and liquidity adequacy.

These guidelines recognise the proportionality principle and the importance of supervisory judgement, providing a flexible but constrained framework for all EU supervisors.

These Guidelines are issued for public consultation and are expected to be applied by 01 January 2016, taking into account the results of the public consultation. These guidelines recognise longer transitional arrangements for the application of certain quantitative liquidity and capital supervisory provisions.

Consultation process

Comments to this consultation can be sent to the EBA by clicking on the "send your comments" button on the consultation page. Please note that the deadline for the submission of comments has been extended to 20 October 2014.

All contributions received will be published following the close of the consultation, unless requested otherwise. A public hearing will take place at the EBA premises on Tuesday 9 September from 10:30 to 13:00 UK time.

Legal basis and next steps

The proposed guidelines, developed pursuant to Article 107(3) of Directive 2013/36/EU (Capital Requirements Directive - CRD), are addressed to competent authorities and aim at promoting common procedures and methodologies for the supervisory review and evaluation process (SREP) referred to in Article 97 of Directive 2013/36/EU and for the assessment of the organisation and treatment of risks referred to in Articles 76 to 87 of Directive 2013/36/EU.


The form is now closed.


Consultation paper

(1.57 MB - PDF) Last update 13 February 2015

BSG response to Consultation (EBA/CP/2014/14)- 18 October 2014

(142.99 KB - PDF) Last update 21 November 2014