The European Banking Authority (EBA) finalised on Friday 26 June the revision of its guidelines governing the Supervisory Review and Evaluation Process (SREP) applied by banking supervisors in the European Union, an exercise that completes the streamlining and simplification of the regulatory framework (see EUROPE 13892/23).
“The revised SREP Guidelines pave the way for a more risk-focused, efficient, proportionate and forward-looking framework for supervisors across the EU”, the EBA said in a statement.
Applicable no later than from January 2027, this third revision of the guidelines since their introduction in 2014 is intended to deliver the following improvements: - streamlining of the prudential framework, which now incorporates issues relating to information technology risks and branches of a banking group in third countries; - more proactive supervision calibrated according to the risk profile of a financial institution, in particular emerging risks (social and environmental risks, information technology-related risks with the integration of the DORA Regulation); - greater interaction between the regulatory pillar (Pillar 1) and the individualised treatment (Pillar 2) of EU prudential rules, notably for setting the output floor for banks using an internal model to calculate their capital requirements.
To see the revised guidelines: https://aeur.eu/f/mmj (Original version in French by Mathieu Bion)