Latest speech from the supervisory board vice-chair now being released
- qualitative assessment plays key role in setting pillar 2 cap charge for banks
- current level of pillar 2 cap requirement is generally adequate to cove current risk exposure
- ECB methodology means new approach for Germany
Lautenschlager concludes:
"I think that the combination of quantitative and qualitative supervisory elements has passed its first test in the SREP 2015. We will of course continue to improve our SREP methodology and its application, as usual. As an important complement to quantitative features, we will keep supervisory judgements as a core element of our SREP methodology.
At the same time, I would like to stress that the supervisor's view on a bank's capital level cannot and should not relieve the bank and its management from its responsibility to ensure an adequate capital level."
Full speech here
