ECB-SSM Publishes Its 2021 SREP Findings Setting The Tone For Supervisory Dialogue For 2022

On 10 February 2022, the European Central Bank (ECB), acting in its Banking Union supervisory role at the head of the Single Supervisory Mechanism (SSM) published the results of the Supervisory Review and Evaluation Procedure (SREP)¹ that was concluded for the year 2021 (SREP 2021).

SREP is an important supervisory tool used by the ECB-SSM but also by national competent authorities (NCAs) in setting the tone for the supervisory dialogue along with priorities as part of the ECB-SSM's overall compliance assessment and BUSI-specific findings. SREP acts as a supervisory scorecard in respect of Banking Union supervised institutions (BUSIs). This scorecard takes the form a formal decision (a legally binding administrative act) that sets out regulatory capital requirements, including beyond regulatory own funds, that are to be maintained by the individual BUSI.