EBA Launches Consultation on Pillar 2 Revisions

The European Banking Authority (EBA) is consulting on changes intended to enhance risk management and supervisory convergence under the Supervisory Review and Examination Process (SREP).

The revisions focus on stress testing and interest rate risk in the banking book (IRRBB), in particular updates to:

  • Guidelines on common procedures and methodology for SREP
  • Guidelines for managing interest rate risk from non-trading activities
  • Guidelines for stress testing

The consultations will run until 31 January 2018.