Examples of Supervisory Review in a sentence
Pillar 2 (the Supervisory Review Process) of the Basel III framework requires ADIs to make their own assessments of capital adequacy in light of their risk profile and to have a strategy in place for maintaining their capital levels.
Capital Adequacy requirements The ECB is required under the Council Regulation (EU) No. 1024/2013 (the SSM Regulation establishing the Single Supervisory Mechanism (SSM)) to carry out a Supervisory Review and Evaluation Process (SREP) at least on an annual basis.
Pillar 2: Supervisory Review Process Pillar 2 requires banks to undertake a comprehensive assessment of their risks and to determine the appropriate amounts of capital to be held against these risks where other suitable mitigants are not available.
Pillar 2 pertains to the Supervisory Review Process and emphasises the importance of Internal Capital Adequacy Assessment Process (ICAAP) performed by banks.
This is referred to as the Supervisory Review and Evaluation Process (“SREP”).