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Supervisory disclosure

The transparency of the supervisory activity is an important requirement of the new prudential framework developed by the Basel Committee on Banking Supervision (BCBS), known as "Basel III", and adopted by Community legislation through Directive 2013/36/EU (CRD IV) and Regulation (EU) No 575/2013 (CRR).

CRD IV, transposed by the Legal Framework of Credit Institutions and Financial Companies, establishes a set of disclosure requirements with which the supervisory authorities have to comply.

The European Banking Authority (EBA) has updated the common disclosure template, which simplifies comparison of the approaches adopted by the various authorities. The disclosures are standardised for Member States and centralised in the EBA website.

The tables shown in pages "Rules and guidance", "Options and national discretions", "Supervisory review and evaluation process" and "Statistical data" fulfil such disclosure requirements.

Rules and guidance

The competent authorities must disclose the texts of laws, regulations, administrative rules and general guidance adopted in their Member State in the field of prudential regulation.

The content and level of detail of the information to be disclosed by the supervisory authorities of the European Union were developed by the EBA and resulted in Commission Implementing Regulation (EU) No 650/2014 of 4 June 2014.

Information on the approach adopted in other Member States is available on the EBA website.

The document 'Supervisory Disclosures - Annex I' (Rules and guidance), available below, includes information on the transposition of international rules to the Portuguese legal framework, as well as the relevant notices and instructions issued by Banco de Portugal.

Options and national discretions

Directive 2013/36/EU (CRD IV) and Regulation (EU) No 575/2013 contain several options and national discretions for supervisory authorities, intended to accommodate the specificities of institutions and national markets.

Differences in the prudential framework between Member States are an important issue for banking groups acting in different jurisdictions within the European Union.

The document 'Supervisory Disclosures - Annex II' (Options and discretions), available below, presents Portugal's exercising of options and discretions laid down in the Directive and the Regulation.

Information on the approach adopted in other Member States is available on the EBA website.

Supervisory review and evaluation process

The document 'Supervisory Disclosures - Annex III' (Supervisory review and evaluation process - SREP), available below, presents information on the general criteria and methodologies used by Banco de Portugal in the Supervisory Review and Evaluation Process (SREP), as established by Article 97 of Directive 2013/36/EU (CRD IV) and Article 116-A of the Legal Framework of Credit Institutions and Financial Companies.

Disclosure follows the approach defined by the EBA, including information on risk assessment.

Information on the approach adopted in other Member States is available on the EBA website.

Statistical data

The document 'Supervisory Disclosures - Annex IV' (Statistical Data), available below, discloses aggregate statistical data on fundamental aspects of the application of the prudential regime in Portugal.

The tables contain information on credit risk, on market risk and on operational risk, as well as on supervisory actions and measures implemented by Banco de Portugal.

Information on the approach adopted in other Member States is available on the EBA website.