The European Banking Authority has published final revised Guidelines on common procedures and methodologies for the supervisory review and evaluation process and supervisory stress testing. The update consolidates existing SREP and ICT risk guidance into a single framework, incorporates new Capital Requirements Directive VI mandates on third-country branches and the output floor, and is intended to make EU banking supervision more risk-focused, proportionate and forward-looking. The Guidelines are addressed to competent authorities and will apply from 1 January 2027. The revision streamlines the framework while keeping the core structure of the SREP, including a 30 percent reduction in overall page count. It brings together all SREP-related guidance, removes duplication, merges liquidity and funding risk assessments, and gives clearer links to the relevant legal acts. Supervisory risk coverage is broadened to place more emphasis on emerging or materially evolving risks, including information and communication technology risk, environmental, social and governance factors, and credit spread risk from non-trading activities. The Guidelines also strengthen proportionality by calibrating supervisory work to institutions' risk profiles and making greater use of information supervisors already hold. Other changes include a high-level escalation framework, a stronger link between supervisory findings and measures, clearer communication of SREP outcomes, a more detailed risk taxonomy for key risk categories, clarification of the interaction between Pillar 1 and Pillar 2 requirements, and the integration of the Digital Operational Resilience Act and operational resilience concepts. Competent authorities must report whether they comply or intend to comply within two months of the publication of the translations into the official EU languages. The EBA also encourages earlier use of the revised approach where possible in supervisory planning cycles. When the new Guidelines take effect, they will repeal and replace EBA/GL/2022/03 and EBA/GL/2017/05.
European Banking Authority2026-06-26
European Banking Authority issues revised SREP Guidelines with 30 percent simplification and 1 January 2027 application
The European Banking Authority has issued revised SREP Guidelines that consolidate existing supervisory review and ICT risk guidance, add new CRD VI elements, and apply from 1 January 2027. The changes streamline the framework by 30 percent, strengthen risk-based and forward-looking supervision, and clarify areas including Pillar 1 and Pillar 2 interaction, ICT and DORA, ESG, and the output floor. Competent authorities must confirm compliance or intended compliance after the translated text is published.