EBA Updates Data Used to Identify Systemically Important Banks

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. The identification will be based on the disclosure of global denominators and global systemically important banks (G-SIBs) exercise results, which are expected to be published by BCBS and FSB in November each year. The higher capital requirement will then apply after about one year from the publication, by competent authorities, of the scoring results of banks, thus allowing institutions enough time to adjust to the new buffer requirement. 

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 BCBS. The current level of disclosure in EU goes beyond the minimum standards required by BCBS, both in terms of granularity of the disclosed information and applicable scope of institutions. Consequently, some of the group-specific templates currently published belong to institutions that have not contributed directly to the BCBS G-SIB exercise. The Regulatory Technical Standards on the specification of the methodology for the identification and definition of subcategories of G-SIIs and the Implementing Technical Standards and Guidelines on disclosure of G-SIIs have been developed in accordance with the Capital Requirements Directive (CRD) IV on the basis of internationally agreed standards, such as the framework established by FSB and BCBS.

Related Links

• Press Release
• Aggregate and Individual Bank Data 

Keywords: Europe, EU, Banking, G-SIB, National Competent Authorities, Disclosures, Basel III, Systemic Risk, CRD IV, BCBS, FSB, EBA