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

    NGFS Seeks Public Feedback on Climate Risk Assessment Scenarios

    The Network for Greening the Financial System (NGFS) launched its first user feedback survey on climate scenarios, with the feedback period ending on February 27, 2023.

    February 06, 2023 WebPage Regulatory News

    EBA Launches Stress Tests for Banks, Issues Other Updates

    The European Banking Authority (EBA) launched the 2023 European Union (EU)-wide stress test, published annual reports on minimum requirement for own funds and eligible liabilities (MREL) and high earners with data as of December 2021.

    January 31, 2023 WebPage Regulatory News

    EBA Proposes Standards for IRRBB Reporting Under Basel Framework

    The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.

    January 31, 2023 WebPage Regulatory News

    FED Issues Further Details on Pilot Climate Scenario Analysis Exercise

    The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.

    January 17, 2023 WebPage Regulatory News

    US Agencies Issue Several Regulatory and Reporting Updates

    The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.

    January 04, 2023 WebPage Regulatory News

    ECB Issues Multiple Reports and Regulatory Updates for Banks

    The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.

    January 01, 2023 WebPage Regulatory News

    HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements

    The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.

    December 30, 2022 WebPage Regulatory News

    EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR

    The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.

    December 29, 2022 WebPage Regulatory News

    CBIRC Revises Measures on Corporate Governance Supervision

    The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.

    December 29, 2022 WebPage Regulatory News

    HKMA Publications Address Sustainability Issues in Financial Sector

    The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.

    December 23, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8702