+Title 7 SREP capital assessment
---+7.1 General considerations
------+266. Competent authorities should determine through the SREP capital assessment whether the own …
------+267. Competent authorities should do this by determining and setting the amount of additional own …
------+268. To address potential capital inadequacies, including in adverse conditions, competent …
------+269. When setting the additional own funds requirement and, where relevant, P2G, competent …
------+270. Competent authorities should assess the adequacy of the investment firm’s own funds and the …
------+271. Competent authorities should determine and set the additional own funds requirement and, where …
------+272. Competent authorities may determine any additional own funds requirement for small and …
---+7.2 Determining additional own funds requirement
------+273. Competent authorities should determine additional own funds requirement for material risks and …
------+274. The total amount of additional own funds requirement should be the sum of any additional own …
------+275. Competent authorities are required to set the level of additional own funds requirement to …
------+276. Competent authorities should rely on the following sources of information for the …
------+277. As referred in paragraph 276, point (a), the ICAAP and outcomes of its assessment should be …
------+278. As referred to in paragraph 276, point (b), where appropriate, the recovery plan and its …
------+279. Competent authorities should assess whether the ICAAP is covering both: a. the risks or …
------+280. Competent authorities should assess the reliability of the ICAAP calculations related to …
------+281. Competent authorities should further assess the reliability of the ICAAP calculations by …
------+282. An ICAAP calculation should be considered partially reliable where, despite not meeting all …
------+283. Competent authorities should develop and apply risk-specific supervisory benchmarks as a means …
------+284. The supervisory benchmarks should be developed, taking into account the implementation burden …
------+285. Given the variety of different business models operated by, size and complexity of investment …
------+286. When competent authorities take supervisory benchmarks into consideration for the …
------+287. Competent authorities should use other relevant inputs to support the determination of risk …
------+288. Other relevant inputs should prompt competent authorities to reassess the …
------+289. To ensure consistency in determining additional risk category-by-risk category or risk-by-risk …
------+290. When competent authorities take other relevant inputs into consideration for the determination …
------+291. If, during the ongoing review of internal approaches pursuant to the requirements of Article …
------+292. If during their reviews pursuant to Article 36 of Directive (EU) 2019/2034, and following the …
------+293. Competent authorities should set additional own funds to cover deficiencies in governance …
------+294. Where an investment firm that does not meet the conditions for qualifying as small and …
---+7.3 Articulation and justification of own funds requirements
------+295. In determining additional own funds requirement in accordance with Article 40 (3) of Directive …
------+296. Competent authorities should ensure 𝐷𝐷 that the applicable additional own funds requirement …
------+297. When communicating the prudential requirements to investment firms, competent authorities …
------+298. In the justification of additional own funds requirement pursuant to paragraph 273, points (b) …
---+7.4 Meeting requirements under cyclical economic fluctuations
------+299. For investment firms that do not meet the conditions for qualifying as small and …
------+300. When considering adverse cyclical economic fluctuations, competent authorities should assess …
------+301. To assess capital adequacy in case of adverse cyclical economic fluctuations, competent …
------+302. Based on the assessment pursuant to paragraph 301, competent authorities should determine …
------+303. Competent authorities should determine P2G as specified in this section, and at a time …
------+304. P2G is the amount of capital considered adequate that should be set to allow for cyclical …
------+305. Competent authorities should determine and set P2G based on the outcomes of the assessment of …
------+306. For the purpose of paragraph 305, competent authorities should ensure that the analyses …
------+307. Competent authorities should generally not use P2G to cover aspects of risks that should be …
------+308. When determining the size of P2G, competent authorities should ensure that it is set at a …
------+309. When determining the size of P2G, competent authorities should consider, where relevant, the …
------+310. Without prejudice to paragraph 271, competent authorities should timely review the level of …
------+311. P2G set by competent authorities is additional to the highest component of own funds …
------+312. Where P2G is set or updated, competent authorities should communicate to the investment firm …
------+313. In case of a review in accordance with paragraph 310310, where supervisory reviews in …
------+314. Competent authorities should communicate to investment firms that P2G is expected to be met …
------+315. Competent authorities should also communicate to investment firms that own funds held for the …
------+316. When setting and communicating to the investment firm time limits to establish P2G, competent …
------+317. When the quantitative outcomes referred to in Section 7.4 indicate that, under the given …
------+318. To determine the credibility of the capital plan, the competent authority should consider, as …
------+319. When assessing capital plans, competent authorities should, where appropriate, following an …
------+320. Competent authorities should expect investment firms to implement the revised capital plan …
------+321. Competent authorities should, where relevant, consider the application of additional …
------+322. In particular, where the quantitative outcomes of the stress tests or sensitivity analyses …
---+7.5 Summary of findings and scoring
------+323. Following the above assessment, competent authorities should form a view on whether existing …
------+Score Supervisory view Considerations
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Title 7 SREP capital assessment
Title 7 SREP capital assessment
1. Overview
1.1 References
1.2 Identified Requirements
1.3 Related Standards
2. Identified Requirements
Requirements
| Source |
Requirement |
3. Related Standards
Standards
| Source |
Requirement |
- EBA - Published by the European Banking Authority at https://www.eba.europa.eu/
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