On 7 July 2014, the EBA published a consultation paper on draft Guidelines for common procedures and methodologies for the supervisory review process (“SREP”), the assessment of a firm and treatment of risks. The draft Guidelines  are addressed to national regulators who must ensure that the Guidelines are applied by firms when assessing capital and liquidity adequacy and risks. The Guidelines link the ongoing supervision and assessment of a firm’s viability under the SREP with the determination of whether a firm is failing or likely to fail under the Banking Recovery and Resolution Directive (“BRRD”). The consultation is open until 9 October 2014. The EBA expects the final Guidelines to apply from 1 January 2016.

The consultation paper is available at:

http://www.eba.europa.eu/documents/10180/748829/EBA-CP-2014- 14+%28CP+on+draft+SREP+Guidelines%29.pdf.