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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 36(c) — as applicable on 1 Jan 2027 (version of 1 Jan 2027)

2.2.2

SREP element scores and overall SREP score

36.

At the end of the overall SREP assessment, competent authorities should form a comprehensive overview of the risk profile and viability of the institution based on the four SREP elements:

a.

business model and strategy as specified in Title 4;

b.

internal governance and institution-wide controls as specified in Title 5;

c.

capital adequacy, as specified in Title 7;

d.

liquidity and funding adequacy, as specified in Title 8.

37.

Capital adequacy and liquidity and funding adequacy represent the supervisory view of the capacity of the institution’s capital and liquidity resources to mitigate/cover risks to capital and liquidity and funding, as set out in Titles 6 and 8, and/or other elements for which additional own funds have been determined as set out in Title 7.

38.

The final score is an overall SREP score. This incorporates the four SREP element scores above and supervisory judgement. Competent authorities should ensure that the overall SREP score provides an indication of the institution’s overall viability, including whether the institution is ‘failing or likely to fail’ within the meaning of Article 32 of Directive 2014/59/EU, and having regard to the EBA Guidelines on ‘failing or likely to fail’(17). When the outcome of the overall SREP assessment suggests that an institution can be considered to be ‘failing or likely to fail’, competent authorities should apply a score of ‘F’ and follow the process of engaging with resolution authorities as specified in Article 32 of Directive 2014/59/EU.

39.

Competent authorities should ensure that the SREP element scores and the overall SREP score:

a.

reflect the likelihood that supervisory measures are needed to address concerns;

b.

are considered among the triggers for the decision on whether to apply early intervention measures in accordance with the EBA Guidelines on triggers for use of early intervention measures(18);

c.

inform the prioritisation and planning of supervisory resources and the setting of priorities in the supervisory examination programme (SEP).

(17)

EBA Guidelines on the interpretation of the different circumstances when an institution shall be considered as failing or likely to fail under Article 32(6) of Directive 2014/59/EU (EBA/GL/2015/07).

(18)

EBA Guidelines on triggers for use of early intervention measures (EBA/GL/2015/03).