Regulatory Alerts2020-01-17
Added · Updated
Circular Letter No. CC/2020/00000002 - EBA Guidelines on Stress Testing
The Bank of Portugal incorporates the EBA Guidelines on Stress Testing (EBA/GL/2018/04) into its supervisory practices, revoking Instruction No. 4/2011. Less significant credit institutions and investment companies classified as financial companies must apply these guidelines in accordance with national legal and regulatory provisions, particularly regarding capital and liquidity adequacy self-assessments. Supervisory practices will apply the principle of proportionality based on SREP categories: Category 1 entities must apply the guidelines in full, Category 2 entities apply them according to their activity nature and complexity, and Categories 3 and 4 apply them proportionally based on relevance to their activities, resources, and systemic risk.