A review of the common set of methodologies and standards to cover SREP.
The main features of the Single Supervisory Mechanism (SSM) Supervisory Review and Evaluation Process (SREP) are defined in the Capital Requirements Directive IV (CRDIV) package and the European Banking Authority (EBA) guidelines (EBA/GL/2014/13) on common procedures and methodologies for the supervisory review and evaluation process.
Based on this homogenous framework for all financial institutions throughout the European Union (EU), the SSM has developed a common set of methodologies and standards to cover topics such as the details of the SREP and it is applied proportionately to both significant and less significant institutions.
In the SSM SREP approach we can clearly identify these three elements:
Some of the main features of the new supervisory framework are the following:
The supervisory cycle is an ongoing process in a continuous movement. The key milestones are included in the table below.
© 2017 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.