EBA launches consultation to update methodology to identify G-SIIs

The European Banking Authority (EBA) launched today a consultation to update the identification methodology of global systemically important institutions (G-SIIs) and related capital buffer rates. The need for this revision was prompted, on one hand, by the revised framework for global systemically important banks (G-SIBs) published by the Basel Committee on Banking Supervision (BCBS) in July 2018 and, on the other hand, by the recent mandate given to the EBA to draft an additional methodology for the allocation of G-SII buffer rates to identified G-SIIs. The consultation runs until 5 August 2020.

Considering that the list of EU G-SIBs identified by the BCBS and the list of G-SIIs identified by relevant authorities in EU Member States are identical, the EBA will need to update its Regulatory Technical Standard (RTS) for identifying G-SIIs, its Implementing Technical Standard (ITS) on ex-post disclosure rules applicable to identified G-SIBs. In addition, the EBA guidelines frame ex-ante disclosure rules for very large institutions that may be later identified as G-SIIs.

Consultation process

Comments to this consultation can be sent to the EBA by clicking on the "send your comments" button on the consultation page. Please note that that due to the current Covid-19 situation the deadline for the submission of comments has been extended to 5 August 2020.

The EBA will hold a public hearing on the draft Guidelines, which will take place via conference call on 23 April 6 May 2020 from 14:00 to 16:00 Paris time. The dial in details will be communicated in due course.

Legal basis

The final RTS, ITS and Guidelines have been developed in accordance with Directive (EU) 2019/878 (CRD V), and on the basis of internationally agreed standards, such as the framework established by the FSB, as well as the standards developed by the 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 so as to allow institutions enough time to adjust to the new buffer requirement.

The European Banking Authority (EBA) launched today a consultation to update the identification methodology of global systemically important institutions (G-SIIs) and related capital buffer rates. The need for this revision was prompted, on one hand, by the revised framework for global systemically important banks (G-SIBs) published by the Basel Committee on Banking Supervision (BCBS) in July 2018 and, on the other hand, by the recent mandate given to the EBA to draft an additional methodology for the allocation of G-SII buffer rates to identified G-SIIs. The consultation runs until 5 August 2020.