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Banking Rule Book
Text applicable on 1 Jan 2027Consolidated version of 1 Jan 2027Future dateUnofficial text · authentic on EBA (PDF) (opens in a new tab)

GL-SREP paragraph 322 — as applicable on 1 Jan 2027 (version of 1 Jan 2027)

7.2.3

Determining own funds or other measures to cover other deficiencies

320.

Competent authorities should set P2R to cover deficiencies – identified following the risk assessment outlined in Titles 4 to 6 – where other supervisory measures have not been effective or are considered insufficient to address the identified deficiencies. Competent authorities should only set such P2R as an interim measure while the deficiencies are addressed.

321.

Competent authorities should only set P2R to cover funding risk – identified following the risk assessment outlined in Title 8 – where this is determined to be more appropriate than other supervisory measures.

322.

Where an institution repeatedly fails to establish or maintain an adequate level of own funds to cover the P2G, competent authorities should set P2R to cover that additional risk not later than 2 years after the breach of guidance. Competent authorities may postpone that decision where they allow institutions to operate below the level of guidance due to economic or market conditions or institution-specific circumstances, in line with paragraphs 4522 and 453.