ECB-SSM Sets 2018 Supervisory Priorities and New SREP Methodology
How will this impact Banking Union Supervised Institutions (BUSIs)?
As 2017 draws to a close, the European Central Bank (ECB), acting in its lead supervisory role within the Banking Union's Single Supervisory Mechanism (SSM) published its '2018 Supervisory Priorities' setting out what thematic areas it will concentrate on in the coming supervisory cycle as well as its '2017 Methodology Booklet' on how the ECB-SSM will apply the supervisory review and evaluation process (SREP) in 2018. These 'New Year's' resolutions are key to assessing who will make the supervisory "naughty or nice" list in a full year of regulatory change during 2018 and with a view to 2019 and a range of BREXIT-driven changes. This Client Alert assesses the 2018 Supervisory Priorities and the SSM's SREP Methodology Booklet and should be read in conjunction with existing and forthcoming coverage from our Eurozone Hub.