EBA Updates Data Used to Identify Systemically Important Banks
EBA updated data used for the identification of global systemically important institutions (G-SIIs). The update contains aggregate data on 12 indicators and the underlying data from 36 largest EU institutions whose leverage ratio exposure measure exceeds EUR 200 billion. This end-2018 data contributes to the internationally agreed basis on which a smaller subset of banks will be identified as G-SIIs, following the final assessments from BCBS and FSB. EBA, acting as a central data hub in the disclosure process, will update the data annually and will provide a user-friendly platform to aggregate the data across EU. The first reference date available is December 2013.
The identification of a G-SII, which leads to a higher capital requirement, falls under the responsibility of national competent authorities and will be updated by December 15 every year. The identification will be based on the disclosure of global denominators and global systemically important banks (G-SIBs) exercise results, which are expected to be published by BCBS and FSB in November each year. The higher capital requirement will then apply after about one year from the publication, by competent authorities, of the scoring results of banks, thus allowing institutions enough time to adjust to the new buffer requirement.
EBA Implementing Technical Standards and Guidelines on disclosure of G-SIIs define uniform requirements for disclosing the values used during the identification and scoring process of G-SIIs, in line with the internationally agreed standards developed by FSB and BCBS. The current level of disclosure in EU goes beyond the minimum standards required by BCBS, both in terms of granularity of the disclosed information and applicable scope of institutions. Consequently, some of the group-specific templates currently published belong to institutions that have not contributed directly to the BCBS G-SIB exercise. The Regulatory Technical Standards on the specification of the methodology for the identification and definition of subcategories of G-SIIs and the Implementing Technical Standards and Guidelines on disclosure of G-SIIs have been developed in accordance with the Capital Requirements Directive (CRD) IV on the basis of internationally agreed standards, such as the framework established by FSB and BCBS.
Related Links
Keywords: Europe, EU, Banking, G-SIB, National Competent Authorities, Disclosures, Basel III, Systemic Risk, CRD IV, BCBS, FSB, EBA
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Karen Moss
Senior practitioner in asset and liability management (ALM) and liquidity risk who assists banking clients in advancing their treasury and balance sheet management objectives
Previous Article
CFTC Proposes to Renew Information Collection on Swap Data ReportingRelated Articles
APRA Decides to Standardize Submission Date for Quarterly Reporting
APRA announced the standardization of quarterly reporting due dates for authorized deposit-taking institutions.
EBA Publishes Phase 1 of Reporting Framework 3.1
EBA published the phase 1 of its reporting framework 3.1, with the technical package covering the new reporting requirements for investment firms (under the implementing technical standards on investment firms reporting).
UK Government to Set Out Rules on Wind-down of Critical Benchmarks
HM Treasury notified that, after considering all responses, the government intends to bring forward further legislation, when the Parliamentary time allows, to address issues identified in the consultation on supporting the wind-down of critical benchmarks.
EIOPA Launches Stress Test for Insurance Sector in EU
EIOPA launched the 2021 stress test for the insurance sector in EU.
UK Authorities Publish Third Edition of Regulatory Initiatives Grid
UK authorities jointly published the third edition of Regulatory Initiatives Grid setting out the planned regulatory initiatives for the next 24 months.
EC Consults on Regulation on Non-Financial Sustainability Disclosures
EC is requesting feedback on the proposed Commission Delegated Regulation on the content, methodology, and presentation of information that large financial and non-financial undertakings should disclose about their environmentally sustainable economic activities under the Taxonomy Regulation.
OSFI Outlines Prudential Policy Priorities for Coming Months
OSFI has set out the near-term priorities for federally regulated financial institutions and federally regulated private pension plans for the coming months until March 31, 2022.
BIS Announces TechSprint on Innovative Green Finance Solutions
Under the Italian G20 Presidency, BIS Innovation Hub and the Italian central bank BDI launched the second edition of the G20 TechSprint on the lookout for innovative solutions to resolve operational problems in green and sustainable finance.
ACPR Publishes Version 1.0.0 of RUBA Taxonomy
ACPR published Version 1.0.0 of the RUBA taxonomy, which will come into force from the decree of January 31, 2022.
EBA Proposed Regulatory Standards for Central Database on AML/CFT
EBA proposed the regulatory technical standards on a central database on anti-money laundering and countering the financing of terrorism (AML/CFT) in EU.
