On the whole, the German authorities concluded that, while the computed risk and capital figures are
very important inputs to its capital assessment process, the process of challenging these figures, as
well as the ability to incorporate supervisor’s deep knowledge of a bank’s specific characteristics in
the assessment would be equally, if not more, important.
Thus, a structured panel discussion leading
to an expert judgment that is based on figures but includes qualitative aspects is perceived to bring up
the most reliable results in terms of the capital requirement’s assessment. The authorities are working
to streamline this new proposed SREP approach so that the assessment can be completed within a
shorter timeframe and using fewer resources.