EBA Updates List of Other Systemically Important Institutions
EBA updated the list of Other Systemically Important Institutions (O-SIIs) in EU. The list also reflects the additional capital buffers that the relevant authorities have set for the identified O-SIIs. The criteria to identify O-SIIs is based on the size, importance, complexity (or cross-border activities), and interconnectedness of institutions.
The list of O-SIIs is disclosed on an annual basis, along with any common equity tier 1 (CET1) capital buffer requirements, which may need to be set or reset. Higher capital requirements will become applicable once relevant authorities decide to set institution-specific buffer requirements as a consequence of this O-SII identification. EBA acts as the single point of disclosure for the list of O-SIIs across EU, while each relevant authority discloses information for its respective jurisdiction, along with further details on the underlying rationale and identification process. This additional information is key for understanding the specific features of each O-SII and to obtain insight on supervisory judgment, optional indicators used, buffer decisions, and phase-in implementation dates.
The list of O-SIIs is also available in a user-friendly visualization tool, including the information on O-SII buffers assigned to identified institutions across EU. O-SIIs are institutions that, along with Global Systemically Important Institutions (G-SIIs), are deemed systemically important. They have been identified by the relevant authorities across EU according to the harmonized criteria provided by EBA Guidelines. EBA Guidelines provide flexibility for relevant authorities to apply their supervisory judgment when deciding to include other institutions that might have not been automatically identified as O-SIIs. This approach allows for the assessment of all financial institutions across EU in a comparable way, while still considering the firms that may be deemed systemically important for one jurisdiction on the basis of certain specificities.
Related Links
Keywords: Europe, EU, Banking, O-SII, CET 1, Basel III, Regulatory Capital, Capital Buffers, Systemic Risk, EBA
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Previous Article
Bundesbank Updates Validation Rules for ReportingRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.