EBA Updates List of Other Systemically Important Institutions in EU
EBA updated the 2018 list of other systemically important institutions (O-SIIs) in EU. The list also reflects the additional capital buffers that the relevant authorities have set for the identified O-SIIs. The list of O-SIIs is disclosed annually, along with any common equity tier 1 (CET1) capital buffer requirements, which may need to be set or reset. Higher capital requirements will become applicable once relevant authorities decide to set institution-specific buffer requirements as a consequence of this O-SII identification.
O-SIIs are deemed systemically important and have been identified by the relevant authorities across EU based on the harmonized criteria in the EBA guidelines on criteria to assess O-SIIs. The guidelines define size, importance, complexity, and interconnectedness as the criteria to identify O-SIIs. They provide flexibility for the relevant authorities to apply their supervisory judgment when deciding whether to include other institutions that might have not been automatically identified as O-SIIs. This approach allows for the assessment of all financial institutions across EU in a comparable way, while still not excluding those firms that may be deemed systemically important for one jurisdiction on the basis of certain specifications. EBA acts as the single point of disclosure for the list of O-SIIs across EU, while each relevant authority discloses information for its respective jurisdiction, along with further details on the underlying rationale and identification process.
Related Links
Keywords: Europe, EU, Banking, O-SII, Capital Buffers, CET 1, Systemic Risk, EBA
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Pierre-Etienne Chabanel
Brings expertise in technology and software solutions around banking regulation, whether deployed on-premises or in the cloud.
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Previous Article
CBIRC Publishes Measures for NSFR Disclosures by Commercial BanksRelated Articles
HKMA on Fintech Adoption and Innovation by Banks in Hong Kong
HKMA announced the publication of a report on fintech adoption and innovation in the banking industry in Hong Kong.
BIS on Impact of Increasing Use of Cloud Technology on Cyber Risk
BIS published a working paper that examines the drivers of cyber risk, especially in context of the cloud services.
ECB Consults on Guide for Managing Climate and Environmental Risks
ECB launched consultation on a guide specifying how the Banking Supervision expects banks to consider climate-related and environmental risks in their governance and risk management frameworks and when formulating and implementing their business strategy.
ECB Issues Opinion on Revisions to CRR in Response to COVID Crisis
ECB published an opinion (CON/2020/16) on amendments to the prudential framework in EU in response to the COVID-19 pandemic.
EBA Assesses Interlinkages Between Recovery and Resolution Planning
EBA published a report that examines the interlinkages between recovery and resolution planning under the Bank Recovery and Resolution Directive (BRRD).
SRB Publishes Final MREL Policy Under the Banking Package
SRB published the final Minimum Requirements for Own Funds and Eligible Liabilities (MREL) policy under the Banking Package.
EIOPA Risk Assessment Shows Increase in Credit and Market Risks
EIOPA published its risk dashboard based on Solvency II data from the fourth quarter of 2019.
MNB Issues Statement on Loan Payments After Moratorium Expires
MNB published a statement on loan payments post the announced moratorium, in addition to a set of new questions and answers (Q&A) on supervisory measures and requirements announced amid COVID-19 pandemic.
EBA Single Rulebook Q&A: Second Update for May 2020
EBA updated the Single Rulebook question and answer (Q&A) tool for banks.
US Agencies Temporarily Amend Supplementary Leverage Ratio Calculation
US Agencies (FDIC, FED, and OCC) published an interim final rule that temporarily revises the supplementary leverage ratio calculation for depository institutions.
