№ 10/2018

Fìnansi Ukr. 2018 (10): 82–96

MONETARY POLICY

OLIYNYK Oleh ¹

¹SE “Institute for Economics and Forecasting of NAS of Ukraine”

Supervisory Review and Avaluation Process

The article defines the main priorities and directions of organization of banking supervision in the EU. The preconditions for the Supervisory Review and Evaluation Process (SREP) were reviewed, and SREP tasks were formulated. The methodology for evaluating and monitoring banking institutions is presented. The main components of SREP are determined, their characteristics and procedure are given. The methodology for the categorization of EU banking institutions by size, structure and internal organization of EU banks is considered. The system of assessing and monitoring of banking institutions using SREP is presented. The practice of conducting the analysis of business models of banking institutions as a priority direction of SREP implementation is explored. It has been established that in order to assess the activity of each bank, an individual SREP procedure is developed, which takes into account the bank's specifics of operations, its place in the banking system and other significant factors. It is established that an important part of banking supervision is the consideration of the system of internal assessment of capital adequacy and the system of internal assessment of liquidity sufficiency, analysis of strategies and financial plans of banking institutions, their influence on the financial condition of banks. It is proved that the ability of the institution to implement risk management strategies is an important factor in the life of the business models of banks. A table for assessing business models and strategies of banking institutions has been generated. The priorities of the supervisory activity of the ECB for the short-term perspective are defined. The process of banking supervision in Ukraine at the present stage is analyzed. The promise of SREP introduction in Ukraine is proven. Conclusions are made regarding the main priorities and directions of the SREP, as well as recommendations for Ukraine.

Keywords:assessment of business model, risk assessment, monitoring key indicators, assessment of viability of banking institutions, assessment of the effectiveness of strategy, supervisors

JEL: G18, G28

Oliynyk O. . Supervisory Review and Avaluation Process / O. . Oliynyk // Фінанси України. - 2018. - № 10. - C. 82-96.

Article original in Ukrainian (pp. 82 - 96)

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