Supervisory review 

In this section the Financial Supervision Authority (FIN-FSA) discloses the Finnish application of the international regulations on the Supervisory Review Process (SRP). The Supervisory Review Process is designed to ensure that supervised entities have adequate capital to support material risks and that supervised entities have in place processes of internal governance, internal control and risk management to guarantee stability of operations. The Supervisory Review Process includes both quantifiable elements and qualitative elements that relate to the level of risk management.

The Supervisory Review Process is composed of the Internal Capital Adequacy Assessment Process (ICAAP) and the Supervisory Review and Evaluation Process (SREP), which are in close interaction. The Supervisory Review Process obliges both supervised entities and supervisors to examine capital adequacy and capital adequacy assessment in relation to all material inherent business risks and risks related to changes in the external operating environment.

The supervisor takes action (introduces Supervisory Evaluation of Compliance, SEC) if the supervised entity's Internal Capital Adequacy Assessment Process or the outcome of it falls short of the requirements.

The links on the left iclude information on the Supervisory Review Process and documents with closer detail.

The information disclosed by other EU countries' prudential supervisory bodies can be found on the EBA Internet site.

28 April 2011