EBA Reviews Compliance with Guidance on O-SII Identification Criteria
EBA published the final report on the peer review that evaluated the implementation of the EBA guidelines on the criteria for the assessment and identification of other systemically important institutions (O-SIIs) across the EU. The peer review concluded that the majority of the authorities are compliant with the EBA guidelines, although some of its requirements have not been fully applied in all jurisdictions.
The peer review observed that the jurisdictions expressing their intention to comply with these guidelines are generally compliant. However, EBA observed some deviating practices in several member states, which could potentially hamper harmonization in the Single Market. Therefore, EBA recommends that such deviations be corrected as soon as possible.
The peer review also identified a number of best practices and highlighted the different approaches on remaining up-to-date with the O-SII identification methodology and meeting disclosure requirements. The review highlighted that notification and disclosure obligations would benefit from greater harmonization and the process to calibrate and implement the O-SII buffer, potentially in close cooperation with other EU authorities such as the ESRB. The reference date for this peer review exercise was the 2016 O-SIIs identification exercise, implying that data from the end of 2015 have been used.
Related Link: Final Peer Review Report on EBA O-SII Guidelines (PDF)
Keywords: Europe, EU, Banking, O-SII, Identification Methodology, Peer Review, Compliance Assessment, EBA
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