Own funds

To be able to absorb losses in a going or in a gone concern situation, institutions need own funds in sufficient quantity and quality in accordance with applicable European legislation. The Capital Requirements Regulation (CRR) sets out the characteristics and conditions for own funds and specifies a series of mandates for the EBA. These include the development of Regulatory Technical Standards to further specify the quality criteria applying to institutions' regulatory own funds, as well the deductions that should be applied to own funds elements and the harmonizing disclosures. In addition, the EBA monitors the quality of own funds on an on-going basis and may provide advice and opinions.

Technical Standards, Guidelines & Recommendations

  • Guidelines for the identification of global systemically important institutions (G-SIIs)

    These Guidelines foresee that G-SIIs, as well as other large institutions that have an overall exposure of more than EUR 200 billion Euro and are systemically relevant, will be subject to the same disclosure requirement.

    Status: Final and translated into the EU official languages

  • Regulatory Technical Standards (RTS) on Own Funds

    These Regulatory Technical Standards (RTS) gather a number of mandates given to the EBA by the Capital Requirements Regulation (CRR) in relation to own funds. These RTS include provisions regarding: technical aspects in relation to Common Equity Tier 1, Additional Tier 1, deductions from Common Equity Tier 1 and from own funds in general, as well as transitional provisions on grandfathering; the treatment of gains on sale associated with future margin income in a securitisation context; the conditions under which competent authorities may determine that a type of undertaking is recognised under applicable national law as a mutual, cooperative society, savings institution or similar institution; the criteria to define broad market indices, the calculation of minority interest and the deduction of indirect and synthetic holdings.

    Status: Adopted and published in the Official Journal

  • Technical standards for the identification of global systemically important institutions (G-SIIs)

    The Regulatory Technical Standards (RTS) provide consistent parameters and specify a harmonised methodology for identifying G-SIIs and determining adequate levels of own funds across the European Union. The draft Implementing Technical Standards (ITS) define uniform disclosure requirements to publicise the values used for the identification and scoring process for G-SIIs. The draft Guidelines foresee that G-SIIs, as well as other large institutions that have an overall exposure of more than EUR 200 billion Euro and are systemically relevant, will be subject to the same disclosure requirement.

    Status: Final draft adopted by the EBA and submitted to the European Commission

  • Guidelines on criteria to to assess other systemically important institutions (O-SIIs)

    These Guidelines set forth common European criteria for the assessment of O-SIIs with the aim of striking the appropriate balance between a European framework ensuring a level playing field and comparability across the Union, on the one hand, and the need to take into consideration specificities of Member States' individual banking sectors, on the other.

    Status: Final and translated into the EU official languages

Opinions, Reports and other Publications

 

Opinions

 

Other Publications

Reports