Final and translated into the EU official languages
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.
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.
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.
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.
The European Banking Authority (EBA) launched today a public consultation on the methodology for identifying Global Systemically Important Institutions (G-SIIs). The work aims at ensuring a transparent identification process in line with international regulatory work on global systemically important banks. The public consultation runs until 28 February 2014 and covers the draft RTS on the methodology for identifying G-SIIs, and draft ITS and Guidelines on the disclosure of the value of indicators used in the identification process.
The draft 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 Capital Requirements Directive (CRD) requires that each year Member States' authorities calculate an individual score to measure a bank's systemic significance. Five categories of indicators to be used in this scoring process are defined in the CRD and the EBA draft RTS specify twelve further sub-indicators falling under these categories.
The draft Implementing Technical Standards (ITS) define uniform disclosure requirements to publicise the values used for the identification and scoring process for G-SIIs. These ensure fair competitive conditions between comparable groups of institutions, resulting in greater convergence of supervisory practices and more accurate risk assessments across the EU. Furthermore, uniform disclosure improves data quality and strengthens market discipline.
In order to ensure a transparent identification process and a level playing field, the proposed draft Guidelines foresee that not only G-SIIs, but also other large institutions with an overall exposure of more than EUR 200 billion Euro and which are potentially systemically relevant, will be subject to the same disclosure requirement.
Comments can be sent to the EBA by clicking on the "send your comments" button on the respective consultation pages. Please note that the deadline for the submission of comments is 28 February 2014.
All contributions received will be published following the close of the consultation, unless requested otherwise.
In order to compensate for the higher risk that Global Systemically Important Institutions (G-SIIs) represent for the financial system and the impact that their potential failure may have on sovereign finance and taxpayers, the Capital Requirements Directive (CRD) foresees that higher own funds requirements should be imposed on G-SIIs.
The EBA developed these RTS on the basis of internationally agreed standards, such as the framework established by the Financial Stability Board (FSB), as well as standards for assessing Global Systemically Important Banks and for higher loss absorbency requirements developed by the Basel Committee on Banking Supervision (BCBS). What is more, in order to reduce the administrative burden for institutions, the identification of G-SIIs in the EU is synchronised with the BCBS process. This allows institutions to report the same data to both the BCBS and national authorities at Member States level.
For the first time in the context of the G-SII identification methodology and buffer rates allocation, the European Banking Authority (EBA) today disclosed data items specific to the recognition of the Banking Union and of institutions that are part of the Single Resolution Mechanism. Today’s publication covers 13 indicators and updated underlying data for the 30 largest institutions in the EU whose leverage ratio exposure measure exceeds EUR 200 bn. Acting as a central data hub in the disclosure process, the EBA updates this data on a yearly basis and provides user-friendly tools to aggregate it across the EU.
This end-2021 data will assist competent authorities to identify a subset of banks as global systemically important institutions (G-SIIs), following the final decision by the Basel Committee on Banking Supervision (BCBS) and the Financial Stability Board (FSB).
A stable sample of 27 institutions shows that the aggregate amount for total exposures[1] increased by 3.3% to EUR 20 992 billion at the end of 2021. Intra-financial system assets, assets under custody and over-the-counter derivatives increased by 37.5%, 12.2% and by 9.6%, respectively, accounting for the largest increase since 2013. Payments activity increased by 9.4%, while level 3 assets showing the largest development across all indicators with an increase of 96.3%, rising to an aggregate value above EUR 258 billion. Cross-jurisdictional liabilities and claims both increased by 19.5% and 12.3%, respectively. No indicators observed a decrease since end-2020 figures.
[1] Total exposures measured as for the leverage ratio.
The European Banking Authority (EBA) published today revised final draft regulatory technical standards (RTS) to specify how to identify the indicators of global systemic importance and revised Guidelines on their disclosure. The need for this revision was prompted by the revised framework introduced by the Basel Committee on Banking Supervision (BCBS) in July 2018 to identify global systemically important banks (G-SIBs) as well as by the new requirements laid down in the fifth Capital Requirements Directive (CRD V), which recognise the importance of cross-border activities within the European Banking Union area.
The list of EU G-SIBs identified by the BCBS and the global systemically important institutions (G-SIIs) identified by Member States' authorities have remained identical. One of the key changes stemming from the BCBS’ revised approach is the introduction of a new trading volume indicator, which adds up to the existing 12 indicators used to measure systemic importance. In addition, the revised standards include insurance activities in the indicators-based measurement approach.
At EU level, CRD V has mandated the EBA to develop an additional methodology for the identification of G-SIIs that excludes the cross-border activities of EU banks in Member States of the European Banking Union. The rationale behind this request is to recognise the efforts made in recent years to create harmonised European banking regulation and a common approach to resolution. This additional EU methodology shall take into account the Single Resolution Mechanism (SRM), which could lead to the re-allocation of a G-SII from a higher to a lower sub-category, hence potentially translating into lower capital buffer requirements. These revised RTS will apply from the 2022 G-SII assessment exercise based on end-2021 information.
As a result of the revised Basel framework, also the EBA Guidelines on G-SIIs disclosure requirements have been updated. These requirements apply not only to institutions that have already been identified as G-SIIs but also to other very large entities in the EU that have an overall leverage ratio exposure measure exceeding EUR 200 billion. The EBA Guidelines go beyond the requirements laid down in the Regulation and enable Member State authorities to perform the identification and scoring process and disclosure in a timely manner, and in particular before the identification of any G-SIIs.
Both the RTS on the identification methodology for G-SIIs and the EBA guidelines on disclosure requirements will be under ongoing review, as the BCBS identification process is subject to regular reviews of the identification methodology.
The revised RTS have been drafted in line with the new BCBS’ framework for the identification of G-SIBs introduced in July 2018 and in accordance with Article 131 of Directive (EU) 2019/878 (CRD V) which requires that the EBA designs an additional identification methodology for G-SIIs based both on the existing international standards and on the cross-border activities of the group.
The Guidelines have been issued in accordance with Article 16 of Regulation (EU) No 1093/2010 (EBA Founding Regulation), which mandates the Authority to establish consistent, efficient and effective supervisory practices within the ESFS, and to ensure the common, uniform and consistent application of Union law.
The European Banking Authority (EBA) published today final draft Regulatory Technical Standards (RTS) on the methodology for identifying Global Systemically Important Institutions (G-SIIs), final draft Implementing Technical Standards (ITS) on special disclosure rules applicable to G-SIIs, and final guidelines on special disclosure rules for large institutions. The identification of G-SIIs in the EU is aligned with the framework established by the Financial Stability Board (FSB) and developed by the Basel Committee on Banking Supervision (BCBS). These standards and guidelines will be part of the EU Single Rulebook in banking and aim at enhancing regulatory harmonisation and disclosure across the EU.
The Capital Requirements Directive, (CRD IV) requires G-SIIs to hold higher capital levels in order to contain the risks they pose to the financial system and the impact that their potential failure may have on sovereign finance and taxpayers, the so-called ‘too big to fail' problem.
The final draft RTS provide consistent parameters and specify a harmonised methodology for identifying G-SIIs across the European Union (EU) and determining their adequate levels of capital. According to the CRD IV, competent authorities in each Member State shall calculate, on an annual basis, an individual score to measure a bank's systemic significance. To this end, the CRD IV defines five categories of indicators to be used in this scoring process. The final draft RTS specify twelve quantifiable indicators falling under these five categories, which ultimately measure the impact that the failure of an institution may have on the stability of the global financial system. The EBA will support competent authorities in carrying out the identification process, ensuring practicability and convergence.
The final draft ITS define uniform requirements for disclosing the values used during the identification and scoring process of G-SIIs. Uniform and enhanced disclosure will ensure fair competitive conditions between comparable groups of institutions, thus resulting in greater convergence of supervisory practices and more accurate risk assessments across the EU. Furthermore, uniform disclosure aims at improving data quality and strengthening market discipline. This level of disclosure goes even beyond the minimum standards required by the BCBS.
Finally, in order to increase transparency in the identification process, the final Guidelines stipulate that not only G-SIIs, but also other large institutions with an overall exposure of more than EUR 200 billion Euro and which are potentially systemically relevant, will be subject to the same disclosure requirement as the G-SIIs. The EBA will act as a central data hub in this disclosure process, thus providing a platform to aggregate data across the whole EU.
The final RTS, ITS and Guidelines have been developed in accordance with Directive 2013/36/EU (CRD IV), 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 a higher capital requirement, will take place in January 2015 for the first time, and the higher capital requirement will apply 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.
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.
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 6 May 2020 from 14:00 to 16:00 Paris time. The dial in details will be communicated in due course.
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.
The European Banking Authority (EBA) launched today a public consultation on the methodology for identifying Global Systemically Important Institutions (G-SIIs). The work aims at ensuring a transparent identification process in line with international regulatory work on global systemically important banks. The public consultation runs until 28 February 2014 and covers the draft RTS on the methodology for identifying G-SIIs, and draft ITS and Guidelines on the disclosure of the value of indicators used in the identification process.
The draft 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 Capital Requirements Directive (CRD) requires that each year Member States’ authorities calculate an individual score to measure a bank’s systemic significance. Five categories of indicators to be used in this scoring process are defined in the CRD and the EBA draft RTS specify twelve further sub-indicators falling under these categories.
The draft Implementing Technical Standards (ITS) define uniform disclosure requirements to publicise the values used for the identification and scoring process for G-SIIs. These ensure fair competitive conditions between comparable groups of institutions, resulting in greater convergence of supervisory practices and more accurate risk assessments across the EU. Furthermore, uniform disclosure improves data quality and strengthens market discipline.
In order to ensure a transparent identification process and a level playing field, the proposed draft Guidelines foresee that not only G-SIIs, but also other large institutions with an overall exposure of more than EUR 200 billion Euro and which are potentially systemically relevant, will be subject to the same disclosure requirement.
Comments can be sent to the EBA by clicking on the "send your comments" button on the respective consultation pages. Please note that the deadline for the submission of comments is 28 February 2014.
All contributions received will be published following the close of the consultation, unless requested otherwise.
In order to compensate for the higher risk that Global Systemically Important Institutions (G-SIIs) represent for the financial system and the impact that their potential failure may have on sovereign finance and taxpayers, the Capital Requirements Directive (CRD) foresees that higher own funds requirements should be imposed on G-SIIs.
The EBA developed these RTS on the basis of internationally agreed standards, such as the framework established by the Financial Stability Board (FSB), as well as standards for assessing Global Systemically Important Banks and for higher loss absorbency requirements developed by the Basel Committee on Banking Supervision (BCBS). What is more, in order to reduce the administrative burden for institutions, the identification of G-SIIs in the EU is synchronised with the BCBS process. This allows institutions to report the same data to both the BCBS and national authorities at Member States level.