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Bank Supervision | Supervisory Review and Evaluation Process (SREP)

Supervisory Review and Evaluation Process (SREP)

The NBS carries out prudential supervision of banks, as off-site supervision –  by examining reports and other documentation that the bank submits to the NBS in accordance with the law governing banking operation and other data on the bank’s operation available to the NBS, and as on-site supervision – by inspecting the bank’s business books and other documentation. With a view to preserving and strengthening the stability of the financial system and improving the bank supervision function in accordance with the development and growth of bank's activities and with a view to harmonising domestic regulations with those of the European Union, the NBS continually works on improvement of the regulatory framework and supervisory activities in line with the characteristics of the domestic market and international standards in this area.

The Supervisory Review and Evaluation Process (SREP) that is carried out in the Bank Supervision Department is an ongoing process bringing together findings from all supervisory activities performed on an individual bank into a comprehensive supervisory overview of that bank. In that sense, supervisory activities include establishing an overall score for the bank and, where needed, undertaking  supervisory measures by the NBS with a view to removing the identified irregularities in the bank's operation, in accordance with the current regulatory framework. When conducting the assessment the supervisor applies the principle of proportionality in carrying out supervisory activities and structuring the dialogue with banks.

The Supervisory Review and Evaluation Process (SREP) includes:

  • categorising banks and periodic review of the categorisation;
  • monitoring the basic risk indicators,
  • business model analysis,
  • assessment of the corporate governance and internal controls system,
  • assessment of risks to solvency and liquidity,
  • assessment of adequacy of capital and liquid assets and   
  • overall SREP assessment.









See More...
Categorisation of Banks
Monitoring Basic Risk Indicators
Overall SREP assessment of the bank
Business Model Analysis
Assessment of the Bank's Corporate Governance and Internal Controls System
Analysis of Solvency Risks
Analysis of Risks to the Bank's Liquidity
Analysis of Bank's Capital Adequacy
Analysis of Adequacy of Bank's Liquid Assets