The European Banking Authority (EBA), in accordance with its Pillar 2 Roadmap, published today its final revised Guidelines aimed at further enhancing institutions' risk management and supervisory convergence in the supervisory review and examination process (SREP). The three reviewed Guidelines focus on stress testing, particularly its use in setting Pillar 2 capital guidance (P2G), as well as interest rate risk in the banking book (IRRBB).

In particular, the publication includes:

• Final Report on the Guidelines on the revised common procedures and methodologies for the supervisory review and evaluation process (SREP) and supervisory stress testing; 

• Revised final Guidelines on the management of interest rate risk arising from non-trading activities (IRRBB Guidelines);

• Revised final Guidelines on institutions' stress testing.

The comprehensive EU SREP framework, which was introduced by the EBA in 2014, is now well established and in use by supervisors across the EU. Following the global regulatory developments, as well as the EBA's supervisory convergence assessments, specific changes were needed to reinforce the framework as set out in the EBA's Pillar 2 Roadmap.