NBB has renewed the other systemically important institution (O-SII) designation of eight Belgian banks that were designated as O-SIIs in 2019. For each O-SII, NBB has decided to maintain the capital surcharges announced in 2015. The levels of the capital surcharges are as follows: 1.5% for BNP Paribas Fortis, KBC Group, Belfius Bank, and ING Belgium; 0.75% for Euroclear, The Bank of New York Mellon, Argenta, and Axa Bank Belgium.
These designations are the result of the annual assessment by NBB, based on the EBA identification methodology for systemically important banks. The EBA methodology involves calculation of a score for each bank based on quantitative indicators of size, complexity, interconnectedness, and substitutability. Given that systemically important banks are defined as institutions whose failure would have a significant impact on the financial system or the real economy, additional capital requirements for such institutions have two principal motivations of
- Reducing the probability of default of the institution, given the high economic and social costs of such a default
- Imposing surcharges on the institution that reflect the negative externalities that its failure would generate
Related Link: Press Release
Keywords: Europe, EU, Belgium, Banking, Systemic Risk, O-SII, Regulatory Capital, Basel, NBB
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.
The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.
The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).
The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.
The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.
The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)
The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.
The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.
The European Central Bank (ECB) published a paper that examines how credit rating agencies accepted by the Eurosystem, as part of the Eurosystem Credit Assessment Framework (ECAF)
The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.