Supervisory Review and Evaluation Process (SREP): regulation, procedures, tools and main current issuesRome, 11-13 December 2013

The seminar on the supervisory review and evaluation process (SREP) concluded the Bank of Italy's annual programme of technical cooperation initiatives with central banks and national authorities of emerging countries.

In accordance with the Basel Committee on Banking Supervision framework, the Supervisory Review and Evaluation Process (SREP) is the core activity of Supervisory Authorities, aimed at assessing the banking and financial system soundness, preventing an increase in risk levels and setting adequate capital levels for the institutions. It also offers the rationale for approval of changes in ownership and activities.

The seminar aimed at providing an overview of the Bank of Italy's SREP, including the regulatory framework, the methodologies, the work procedures, the reporting standards and the "state of the art" of the Risk Assessment Systems (RAS) applied to banks and other financial entities.

A specific focus was provided on the main relevant models and tools concerning both off-site and on-site supervisory activities.

Topics included the main issues recently emerged from both a qualitative and quantitative point of view: corporate governance, internal control system, credit risk, provisions adequacy.