EBA updated the 2017 list of other systemically important institutions (O-SIIs) in EU. The list of O-SIIs is disclosed on an annual basis, 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 at least one year after the publication of the O-SIIs list to give institutions enough time to adjust to the new buffer requirements.
EBA has put in place guidelines on criteria to assess O-SIIs define the size, importance, complexity (or cross-border activities), and interconnectedness of such institutions. The guidelines provide additional flexibility for relevant authorities to apply their supervisory judgment when deciding whether to include other institutions that might not have been automatically identified as O-SIIs. This approach allows for the assessment of all financial institutions across the EU in a comparable way, while still not excluding the firms that may be deemed for one EU jurisdiction on the basis of certain specificities. O-SIIs—those institutions which, along with global systemically important institutions (G-SIIs) are deemed systemically important—have been identified by the relevant authorities across EU, according to the harmonized criteria provided by EBA guidelines.
Keywords: Europe, EU, Banking, O-SII, G-SIBs, Capital Buffers, EBA
APRA finalized the reporting standard ARS 115.0 on capital adequacy with respect to the standardized measurement approach to operational risk for authorized deposit-taking institutions in Australia.
ECB published a guide that outlines the principles and methods for calculating the penalties for regulatory breaches of prudential requirements by banks.
MAS and The Association of Banks in Singapore (ABS) jointly issued a paper that sets out good practices for the management of operational and other risks stemming from new work arrangements adopted by financial institutions amid the COVID-19 pandemic.
ACPR announced that a new data collection application, called DLPP (Datalake for Prudential), for collecting banking and insurance prudential data will go into production on April 12, 2021.
BCB announced that the Financial Stability Committee decided to maintain the countercyclical capital buffer (CCyB) for Brazil at 0%, at least until the end of 2021.
EBA is consulting on the implementing technical standards for Pillar 3 disclosures on environmental, social, and governance (ESG) risks, as set out in requirements under Article 449a of the Capital Requirements Regulation (CRR).
ESAs Issue Advice on KPIs on Sustainability for Nonfinancial Reporting
EIOPA has launched a European-wide comparative study on non-life underwriting risk in internal models, also kicking-off of the data collection phase.
SRB published an overview of the resolution tools available in the Banking Union and their impact on a bank’s ability to maintain continuity of access to financial market infrastructure services in resolution.
EU published Directive 2021/338, which amends the Markets in Financial Instruments Directive (MiFID) II and the Capital Requirements Directives (CRD 4 and 5) to facilitate recovery from the COVID-19 crisis.