In its 2017 November report on “LSI supervision within the SSM”;, the ECB indicates that among other actions it has developed a common Supervisory Review and Evaluation Process (SREP) methodology for Less Significant Institutions (LSIs) to foster convergence of supervisory practices. This tool was developed with and is available for National Competent Authorities (NCAs); however it is not public and its content is not known by the industry. Moreover, in the same report, it is also mentioned that within the IFRS 9 project, an IFRS 9 LSIs Methodological Guidance has been developed, including supervisory expectations and scoring criteria, in order to help the NCAs to support their respective LSIs on the implementation of the new accounting standard. Also this document is not public.
While these documents are important to improve the harmonisation of standards and practices within the SSM, it is questionable and not satisfactory for a transparency standpoint that these guidelines are not available to the wider industry. In this regard:
– Why has the ECB decided not to publish the above mentioned documents?
– Does the ECB envisage their publication at a later stage?
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