THE EBA AT A GLANCE
Disclosing information to investors
The EBA works extensively on a disclosure framework
applicable to all EU banks, which defines the common
methodology for issuing and reporting the information.
Through harmonised disclosure, institutions make
available to the public essential data on their capital
positions, shedding light on their health.
A transparent and reliable single market where every-
one discloses the same information in the same man-
ner boosts the confidence of potential investors, who
can see for themselves the true picture regarding the
health of EU banks. This confidence provides in turn
the conditions for EU banks to efficiently deliver on
their core purpose of supporting the real economy by
providing finance to EU citizens and businesses.
The SREP framework
The SREP framework allows supervisors within the EU to assess
risk profiles of institutions, their risk management, control and
governance arrangements, business models, capital and liquidity
The outcomes of this assessment can lead to the application of
supervisory measures or early intervention measures to address
any shortcomings. This common SREP framework aims to increase
the consistency of supervisory practices and outcomes in the banking
sector across the EU. It also provides a solid foundation for the
work of supervisory colleges in their annual joint risk assessments
and in reaching joint decisions on institution-specific prudential
Through the SREP framework, the EBA provides a fundamental tool
to prevent inconsistencies in how supervisors across various Member
States may undertake their reviews and apply supervisory measures.
This prevents any inconsistencies in supervisory conclusions when risk
and measures for EU banks are assessed.