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Banking Rule Book
Text applicable on 7 Oct 2026Consolidated version of 1 Jan 2023In forceUpcoming changefrom 1 Jan 2027Unofficial text · authentic on EBA (PDF) (opens in a new tab)

GL-SREP paragraph 40 — as applicable on 7 Oct 2026 (version of 1 Jan 2023)

Upcoming changeThis provision is amended or removed from 1 Jan 2027.View that version

2.2.2

Viability scores including an overall SREP score

40.

Competent authorities should separately assign scores to summarise the level of risk posed to the viability of the institution based on the outcomes of the assessment of the four SREP elements:

a.

business model and strategy, in accordance with the criteria specified in Title 4;

b.

internal governance and institution-wide controls, in accordance with the criteria specified in Title 5;

c.

capital adequacy, in accordance with the criteria specified in Title 7; and

d.

liquidity adequacy, in accordance with the criteria specified in Title 9.

41.

For capital adequacy and liquidity adequacy, these scores represent the supervisory view of the capacity of the institution’s capital and liquidity resources to mitigate/cover individual 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.

42.

Competent authorities should also assign an overall SREP score in accordance with the criteria specified in Title 10. This score should be assigned based on supervisory judgement and should represent the supervisory view of the overall viability of the institution.

43.

Competent authorities should ensure that the scoring of the business model, internal governance and institution-wide controls, capital adequacy, liquidity adequacy and the overall SREP score achieves the following objectives:

a.

indicating the likelihood that supervisory measures may need to be taken to address concerns in accordance with the criteria specified in Title 10;

b.

acting as a trigger for the decision on whether to apply early intervention measures in accordance with the EBA Guidelines on triggers for use of early intervention measures(10); and

c.

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

44.

Competent authorities should ensure that the overall SREP score assigned on the basis of the aggregate view of the threats from the four SREP elements 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 Directive2014/59/EU, also having regard to the EBA Guidelines on ‘failing or likely to fail’(11).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.

(10)

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

(11)

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)