Minimum requirements for supervisory engagement
Table 1. Application of SREP to different categories of institutions
Category | Summary of Monitoring Assessment of all the overall Minimum level of of key SREP elements (at SREP engagement/dialogue indicators least) assessment |
1 | Ongoing engagement with institution’s management Quarterly Annual Annual body and senior management; engagement with institution |
Category | Summary of Monitoring Assessment of all the overall Minimum level of of key SREP elements (at SREP engagement/dialogue indicators least) assessment |
for assessment of each element. | |
2 | Ongoing engagement with institution’s management body and senior management; Quarterly Every 2 years Annual engagement with institution for assessment of each element. |
3 | Risk-based engagement with institution’s management body and senior management; Quarterly Every 3 years Annual engagement with institution for assessment of material risk element(s). |
4 | Every 3 years with the scope and Engagement with institution’s depth of the review management body and senior Quarterly Annual tailored to the management at least every 3 specific risk profile years. of the institution |
Where competent authorities determine that institutions have similar risk profiles, they may conduct thematic SREP assessments on multiple institutions as a single assessment (e.g. a BMA may be conducted on all small mortgage lenders given that it is likely to identify the same business viability issues for all these institutions). Competent authorities may also use tailored methodologies for the application of the SREP for institutions with similar risk profiles, such as similar business models or geographical location of exposures in accordance with Article 97(4a) of Directive 2013/36/EU.
Competent authorities should determine an additional level of engagement based on the findings from previous assessments of one or more SREP elements, whereby more extensive supervisory resources and a higher intensity and frequency of engagement should be required, tailored to the situation of the individual institution in terms of risks and vulnerabilities, regardless of the category of the institution, for institutions with a poor overall SREP score (at least on a temporary basis).
For institutions covered by the supervisory examination programme required by Article 99 of Directive 2013/36/EU, competent authorities should ensure that the level of engagement and application of the SREP is determined by that programme.
When planning SREP activities, competent authorities should pay special attention to coordinating activities with other parties directly or indirectly involved in the assessment, in particular when input is required from the institution and/or other competent authorities involved in the supervision of cross-border groups as specified in Title 11 of these guidelines.