What does TSCR mean in UNCLASSIFIED

SREP stands for "Supervisory Review and Evaluation Process". This is an international framework adopted by many countries as part of their banking regulations. It defines the processes used to assess a bank's operations and evaluate its ability to manage risks.

Financial institutions are expected to adhere to the SCR standard in order to protect both their customers and their own assets. By doing so, it ensures that they have sufficient capital available should unexpected events occur in the financial markets.

The SCR sets stringent requirements related to liquidity, capital structure, credit risk management, operational risk management and more. Banks must demonstrate their capacity to manage these risks in order properly serve customers while maintaining adequate levels of protection against potential losses.

National regulators are typically responsible for enforcing SCR standards within their jurisdictions. These authorities may carry out periodic reviews of banking operations in order to ensure that firms are compliant with relevant laws and regulations.

The Total SREP Capital Requirement (TSCR) is a higher bar than regular SREP capital requirement — it encompasses all elements of the original requirement but further adds additional elements based on individual banking activities such as foreign exchange trading or off-balance sheet operations.