The following table gives an overview over the general criteria and methodologies used by FCMC in the review and evaluation referred to in Article 124 of the Directive 2006/48/EC.
As defined in the CEBS "Guidelines on the Application of the Supervisory Review Process under Pillar 2" (25 January 2006), the Supervisory Review and Evaluation Process (SREP) is a comprehensive process, which supervisors use to review and evaluate then institutions’ exposure to risks (i.e. risk profile), the adequacy and reliability of the institutions’ Internal Capital Adequacy Assessment Process (ICAAP), the adequacy of institutions’ own funds and internal capital in relation to the assessment of their overall risk profile, to monitor ongoing compliance with standards laid down in the Directives 2006/48/EC and 2006/49/EC (i.e. supervisory evaluation of compliance) and to identify any weaknesses or inadequacies and necessary supervisory actions and prudential measures.
As defined in the CEBS "Guidelines on the Application of the Supervisory Review Process under Pillar 2" (25 January 2006), the ICAAP is a comprehensive process including the management body and senior management oversight, monitoring, reporting and internal control reviews, that institutions must have to identify and measure their risks, allowing them to ensure that adequate provisions are made for holding internal capital in relation to their risk profile.
Related information:
For an overview regarding the general criteria and methodologies the EU Member States use in the review and evaluation referred to in Article 124 of Directive 2006/48/EC in the EU Member States see the corresponding tables on the CEBS homepage http://www.c-ebs.org/Supervisory-Disclosure/Supervisory-review.aspx and http://www.c-ebs.org/documents/Supervisory-Disclosure/spreadsheets/other/Supervisory_review.aspx
CEBS "Guidelines on the Application of the Supervisory Review Process under Pillar 2" http://www.c-ebs.org/getdoc/00ec6db3-bb41-467c-acb9-8e271f617675/GL03.aspx"
"EU regulations:
Directive 2006/48/EC:
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2006:177:0001:0200:EN:PDF
Directive 2006/49/EC:
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2006:177:0201:0255:EN:PDF
Supervisory review and evaluation process in Latvia