On 26 June 2026, the European Banking Authority (EBA) published final revised guidelines on common procedures and methodologies for the supervisory review and evaluation process (SREP) and supervisory stress testing. The revision is a core deliverable of the EBA’s efficiency and simplification agenda and paves the way for a more risk-focused, efficient, proportionate and forward-looking framework for supervisors across the EU.
The revised guidelines are addressed to Member State competent authorities (NCAs) and apply from 1 January 2027. Among other things the EBA has clarified the risk taxonomy and interaction between Pillar 1 and Pillar 2. It has done this by introducing non-exhaustive sub-categories for credit risk, market risk, operational risk and interest rate risk in the banking book to support more consistent supervisory assessments. The revised guidelines further clarify the interaction between Pillar 1 and Pillar 2 requirements, including the application of the output floor.
Whilst the revised guidelines apply from 1 January 2027 the EBA encourages NCAs to consider them ahead of that date and, where possible, to introduce its elements at an earlier stage of their supervisory planning cycles. Upon entry into force, the guidelines repeal and replace the EBA’s guidelines on common procedures and methodologies for the SREP and supervisory stress testing and the EBA’s guidelines on ICT risk assessment under the SREP.