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

    EBA Updates List of Validation Rules for Reporting by Banks

    EBA issued a revised list of validation rules with respect to the implementing technical standards on supervisory reporting.

    September 10, 2020 WebPage Regulatory News
    News

    EBA Responds to EC Call for Advice to Strengthen AML/CFT Framework

    EBA published its response to the call for advice of EC on ways to strengthen the EU legal framework on anti-money laundering and countering the financing of terrorism (AML/CFT).

    September 10, 2020 WebPage Regulatory News
    News

    NGFS Advocates Environmental Risk Analysis for Financial Sector

    NGFS published a paper on the overview of environmental risk analysis by financial institutions and an occasional paper on the case studies on environmental risk analysis methodologies.

    September 10, 2020 WebPage Regulatory News
    News

    MAS Issues Guidelines to Promote Senior Management Accountability

    MAS published the guidelines on individual accountability and conduct at financial institutions.

    September 10, 2020 WebPage Regulatory News
    News

    APRA Formalizes Capital Treatment and Reporting of COVID-19 Loans

    APRA published final versions of the prudential standard APS 220 on credit quality and the reporting standard ARS 923.2 on repayment deferrals.

    September 09, 2020 WebPage Regulatory News
    News

    SRB Chair Discusses Path to Harmonized Liquidation Regime for Banks

    SRB published two articles, with one article discussing the framework in place to safeguard financial stability amid crisis and the other article outlining the path to a harmonized and predictable liquidation regime.

    September 09, 2020 WebPage Regulatory News
    News

    FSB Workshop Discusses Preliminary Findings of Too-Big-To-Fail Reforms

    FSB hosted a virtual workshop as part of the consultation process for its evaluation of the too-big-to-fail reforms.

    September 09, 2020 WebPage Regulatory News
    News

    ECB Updates List of Supervised Entities in EU in September 2020

    ECB updated the list of supervised entities in EU, with the number of significant supervised entities being 115.

    September 08, 2020 WebPage Regulatory News
    News

    OSFI Identifies Focus Areas to Strengthen Third-Party Risk Management

    OSFI published the key findings of a study on third-party risk management.

    September 08, 2020 WebPage Regulatory News
    News

    FSB Extends Implementation Timeline for Framework on SFTs

    FSB is extending the implementation timeline, by one year, for the minimum haircut standards for non-centrally cleared securities financing transactions or SFTs.

    September 07, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5796