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Bank Supervision | Supervisory Review and Evaluation Process (SREP)

Categorisation of Banks

The Bank Supervision Department categorises banks according to their size, structure and internal organisation, as well as according to the nature, scope and complexity of their business activities.

Based on the analysis of internal criteria, the following 4 categories of banks  are identified:

  1. peer 1 – banks categorised as systemically important banks;
  2. peer 2 – banks categorised as medium to large, which are not considered systemically important, but have a significant market share (e.g. in the relevant lines of business or in the payment system or in the financial market);
  3. peer 3 –  small to medium banks, that do not qualify for group 1 or 2 and can be considered banks without a significant market share (e.g. in the relevant lines of business or in the payment system or in the financial market); and
  4. peer 4 – banks categorised as micro banks that do not fall into groups 1, 2 or 3, with a limited market share according to the majority of criteria.

The above categorisation of banks is subject to a periodic review and represents the basis for application of the principle of proportionality and not the criterion for assessment of the bank's quality; the principle of proportionality is applied when deciding on the scope, frequency and intensity  of  supervisory engagement and dialogue with a bank, and in forming supervisory expectations about the standards the bank should meet regarding the SREP element observed, in accordance with the group into which it is categorised according to the given SREP element.