Supervisory review

This section includes information on the criteria and general methodology used in the AFA’s supervisory review and evaluation process as established in Article 91 of Law 35/2018.

The AFA supervisory model takes into account the Core Principles for Effective Banking Supervision published by the Basel Committee on Banking Supervision as well as the revised Guidelines on common procedures and methodologies for the supervisory review and assessment process and supervisory endurance tests, amending guidelines EBA/GL/2014/13, of 19 December 2014 (revised in July 2018). It always stays adapted to the typology of entities under the supervision of the AFA and takes into account the principle of proportionality depending on the size, structure and internal organisation of the entity, as well as the nature, scale and complexity of its activities.

The AFA assesses the risks that entities face and verifies that they are endowed to properly manage them. This activity is called SREP (Supervisory Review and Evaluation Process), PRAS in Catalan (Procés de Revisió i Avaluació Supervisora), and aims to allow the risk profiles of entities to be assessed consistently and make decisions regarding to any supervisory measures needed.

How we supervise