This section covers the general criteria and methodologies used by BaFin and Bundesbank in the Supervisory Review and Evaluation Process (SREP) - referred to in Article 97 of Directive 2013/36/EU - the minimum requirements for the Internal Capital Adequacy Assessment Process (ICAAP) conducted by the institutions themselves, and the policies that guide BaFin and Bundesbank in taking supervisory measures with respect to specific institutions.
The executive summaries on the supervisory review in Germany may serve as a first introduction. The four categories of Supervisory Review include:
- Scope and classification (including proportionality)
- Individual risk assessment
- Review and evaluation of ICAAP
- Overall assessment and supervisory measures