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.
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Keywords: Europe, EU, Banking, G-SIB, National Competent Authorities, Disclosures, Basel III, Systemic Risk, CRD IV, BCBS, FSB, EBA
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