The revised Capital Requirements Directive (CRD) requires that the consolidating supervisor and supervisors of subsidiaries involved in the supervision of an EEA cross border banking group do everything within their power to reach a joint decision on the application of the Pillar 2 provisions related to the Internal Capital Adequacy Assessment Process (ICAAP) and the Supervisory Review and Evaluation Process (SREP).

In order to facilitate the joint decision process the CRD also requires that the Committee of European Banking Supervisors (CEBS) produce guidelines for the convergence of supervisory practices with regard to the joint decision process and, with a view to facilitating joint decisions, with regard to the application of the provisions related to the SREP, the ICAAP, and the determination of additional levels of own funds under Article 136(2) of the CRD.

CEBS has now published for consultation draft guidelines. The deadline for comments on the draft guidelines is 9 July 2010. A public hearing will be held on 3 June 2010 at CEBS’s premises in London.

view CEBS draft guidelines, 7 April 2010