SREP
Definition
Supervisory Review and Evaluation Process. The regulator's assessment of a bank's risk profile, governance, and capital adequacy.
What This Actually Means
The process where your regulator reviews everything — your risk management, governance, capital adequacy, liquidity, and business model. For IRRBB, they'll assess your measurement framework, data quality, model assumptions, governance, and capital allocation.
Where It Matters
This is where the rubber meets the road. Your IRRBB models can be technically perfect, but if the SREP review finds weak governance, poor data quality, or unrealistic assumptions, you'll get a higher capital requirement or a risk management action. Regulators increasingly focus on the plumbing, not just the models.
The regulator's assessment of your bank. Where IRRBB capital add-ons get set.