August 09, 2018

EBA published 12 indicators and updated the underlying data from the 35 largest institutions in the EU, whose leverage ratio exposure measure exceeds EUR 200 billion. This end-2017 data contributes to the internationally agreed basis on which a smaller subset of banks will be identified as global systemically important institutions (G-SIIs), following the final assessments of BCBS and FSB.

EBA, acting as a central data hub in the disclosure process, will update this data on a yearly basis and will provide a user-friendly platform to aggregate it across the EU. A stable sample of 33 institutions shows that aggregate values for level 3 assets decreased by 20% from end-2016 and by 39% from end-2014, while, for assets under custody, the total amount increased by 7% from end-2016 and by 16% from end-2013. Intra financial system assets and liabilities both observed a decrease from end-2016, by 6% and 7%, respectively. Total exposures for these 33 institutions, as measured for the leverage ratio, decreased by 1.1% and stood at EUR 24.3 trillion at the end of 2017. 

The EBA implementing technical standards and guidelines on disclosure of G-SIIs define uniform requirements for disclosing the values used during the identification and scoring process of G-SIIs, in line with the internationally agreed standards developed by FSB and the BCBS. The identification of a G-SII, which leads to a higher capital requirement, falls under the responsibility of national competent authorities and will be updated by December 15 every year.

 

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Keywords: Europe, EU, Banking, Systemic Risk, G-SII, EBA