Assessment of a financial conglomerate’s financial situation

The coordinator should engage in dialogue with the relevant competent authorities in order to perform the task of supervisory overview and assessment of the financial situation of the financial conglomerate. Considering the group’s structure, as agreed during the mapping exercise, the coordinator should assess the overall risk profile of the financial conglomerate.

The coordinator should ensure that the dialogue identifies:

• a) the main vulnerabilities and deficiencies of the financial conglomerate’s entities giving particular attention to their cross-sectoral links; and
• b) risk management and control issues in relation to compliance with capital requirements, risk concentrations and intra-group transactions.