The comprehensive common EU supervisory review and evaluation process (SREP) framework is well established since 2014 and has been applied in practice since 2016. In the European Banking Authority‘s (EBA) view, the framework remains robust and serves well the purpose of ensuring convergence of supervisory practices, but in the light of the recent developments in the EU and international fora, as well as based on the EBA's findings from its ongoing monitoring and assessment of convergence of supervisory practices, certain changes are needed to further reinforce the framework.
In particular, recent external developments, such as the revision of the Basel framework for the interest rate risk in the banking book (IRRBB), the EBA's work on Pillar 2 capital guidance (P2G), the progress made in the areas of stress testing and supervisory stress testing, as well as the planned revision of the Pillar 2 framework in the Capital Requirements Regulation (CRR) and Capital Requirements Directive (CRD) call for a comprehensive and multi-stage revision of a number of EBA Pillar 2 related policy documents as well as for the development of new technical standards.
The EBA expects to launch for public consultation its first revision of the SREP framework by November 2017, and to implement it by 2018.
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