SREP (Supervisory Review and Evaluation Process)

Roles that need it

• Regulatory Consultant (Banking)
• Capital Reporting Analyst
• Regulatory Change Analyst
• Risk Advisory Consultant
• Liquidity Risk Analyst
• Treasury Analyst

Skills it belongs to

• Basel framework and capital
• Regulatory change impact assessment
• Reading organisational and political context

Related concepts

• Pillar 2 (P2R and P2G)Pillar 2 covers risks not captured, or not fully captured, by Pillar 1. Supervisors set a binding Pillar 2 requirement (P2R) after the SREP, and a non-binding Pillar 2 guidance (P2G) informed by stress tests. Both are expressed as a share of risk-weighted assets.
• ICAAP (Internal Capital Adequacy Assessment Process)The ICAAP is a bank's own process for identifying its material risks and assessing whether its internal capital is adequate to cover them now and under stress over a forward-looking horizon. It is required by Article 73 of the CRD and is a key input to the SREP.
• ILAAP (Internal Liquidity Adequacy Assessment Process)The ILAAP is a bank's own process for identifying, measuring and managing its liquidity and funding risks and assessing whether its liquidity buffers and funding profile are adequate, including under stress. It is required by Article 86 of the CRD and feeds into the SREP.
• Single Supervisory Mechanism (SSM)The Single Supervisory Mechanism is the euro area system of banking supervision, made up of the ECB and national supervisors. The ECB directly supervises significant banks and oversees the supervision of less significant ones by national authorities. It started in November 2014.

Sources

• Directive 2013/36/EU (Capital Requirements Directive), EUR-Lex (external site) accessed 31 Oct 2026
• SREP methodology, ECB Banking Supervision (external site) accessed 31 Oct 2026

Updated 31 Oct 2026.