Featured Product

    EBA Proposes to Update Methodology for Identification of G-SIIs

    March 05, 2020

    EBA launched a consultation to update the identification methodology of global systemically relevant institutions (G-SIIs) and related capital buffer rates. EBA is proposing to update regulatory technical standards on the identification methodology for G‐SIIs and implementing technical standards on Pillar 3 disclosure of indicators for global systemically important banks (G‐SIBs). The proposal also covers updated guidelines on the specification, reporting, and disclosure of indicators of global systemic importance. The consultation closes on June 05, 2020.

    Following Article 441 of the revised Capital Requirements Regulation or CRR2, institutions identified as G‐SIIs are required to disclose, on an annual basis, the values of the indicators used for determining their score in accordance with the identification methodology referred to in Article 131 of CRD5. Article 434a of the CRR2 includes the mandate for EBA to develop draft implementing technical standards specifying uniform disclosure formats and associated instructions in accordance with which the disclosures required under Titles II and III of Part Eight of the CRR shall be made, including the disclosure required in Article 441. For practical reasons, data instructions for indicator values and detailed template specifications are included in the guidelines. Updates of such instructions and specifications will be published annually and should be considered by all groups and institutions exceeding EUR 200 billion of exposure measure, including insurance subsidiaries.

    The two factors that prompted the need for this update are the revised G-SIB framework published by BCBS in July 2018 and the recent mandate given to EBA to draft an additional methodology for the allocation of G-SII buffer rates to identified G-SIIs. The proposed standards and guidelines have been developed in accordance with the Capital Requirements Directive (CRD5 or Directive 2019/878) and on the basis of internationally agreed standards, such as the framework established by FSB and the standards developed by BCBS. The identification as G-SII, which leads to higher additional capital requirements, takes place in December every year. The higher additional capital requirement applies one year after the publication, by competent authorities in each member state, of banks' scoring results to allow institutions enough time to adjust to the new buffer requirement.

    The draft regulation and implementing technical will be submitted to EC for endorsement, following which they will be subject to scrutiny by the European Parliament and the Council before being published in the Official Journal of the European Union. The guidelines will then be translated into the official EU languages and published on the EBA website. The deadline for competent authorities to report whether they comply with the guidelines will be two months after the publication of the translations.

     

    Related Links

    Comment Due Date: June 05, 2020

    Keywords: Europe, EU, Banking, Basel III, CRR/CRD, Systemic Risk, G-SII, G-SIB, Disclosures, Reporting, Pillar 3, EBA

    Featured Experts
    Related Articles
    News

    EC Consults on PSD2 and Open Finance; EU Reaches Agreement on DORA

    The European Commission (EC) published a public consultation on the review of revised payment services directive (PSD2) and open finance.

    May 11, 2022 WebPage Regulatory News
    News

    EC Mandates ESAs to Propose Amendments to SFDR Technical Standards

    The European Commission (EC) has issued two letters mandating the European Supervisory Authorities (ESAs) to jointly propose amendments to the regulatory technical standards under Sustainable Finance Disclosure Regulation or SFDR.

    May 11, 2022 WebPage Regulatory News
    News

    EBA Examines Supervisory Practices, Issues Deposits Reporting Template

    The European Banking Authority (EBA) published its annual report on convergence of supervisory practices for 2021. Additionally, following a request from the European Commission (EC),

    May 11, 2022 WebPage Regulatory News
    News

    US Agency Publications Address Basel, Reporting, and CECL Developments

    The Farm Credit Administration published, in the Federal Register, the final rule on implementation of the Current Expected Credit Losses (CECL) methodology for allowances

    May 09, 2022 WebPage Regulatory News
    News

    SEC Extends Comment Period on Climate Risk Disclosures

    The U.S. Securities and Exchange Commission (SEC) looks set to intensify focus on crypto-assets and cyber risk and extended the comment period on the proposed rules to enhance and standardize climate-related disclosures for investors.

    May 09, 2022 WebPage Regulatory News
    News

    APRA Reduces Committed Liquidity Facility, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility and issued an update on the operational preparedness for zero and negative market interest rates.

    May 09, 2022 WebPage Regulatory News
    News

    CMF Consults on Basel Rules, Presents Roadmap to Address Climate Risks

    The Commission for the Financial Market (CMF) in Chile published capital adequacy ratios (as of February 2022, January 2022, and December 2021) for 17 banks and for the banking system.

    May 06, 2022 WebPage Regulatory News
    News

    PRA Issues Statement on NPEs and Policy on Trading Activity Wind-Down

    The Prudential Regulation Authority (PRA) issued a statement on the European Banking Authority (EBA) guidelines on management of non-performing exposures (NPEs) and forborne exposures.

    May 06, 2022 WebPage Regulatory News
    News

    EBA Updates Standards for 2023 Benchmarking of Internal Approaches

    The European Banking Authority (EBA) updated the implementing technical standards that specify the data collection for the 2023 supervisory benchmarking exercise in relation to the internal approaches used in market risk, credit risk, and IFRS 9 accounting.

    May 06, 2022 WebPage Regulatory News
    News

    EIOPA Responds to Stakeholder Views on Blockchain in Insurance

    The European Insurance and Occupational Pensions Authority (EIOPA) published a feedback statement on the responses received to the consultation on blockchain and smart contracts in insurance.

    May 06, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8179