19 February 2016

Bank of England: The PRA’s approach to identifying other systemically important institutions

In CP39/15 the Prudential Regulation Authority (PRA) set out the criteria and scoring methodology it proposed to use to identify other systemically important institutions (O-SIIs). These criteria and methodology are derived from Article 131(3) of the Capital Requirements Directive (2013/36/EU) (CRD IV) – which requires O-SIIs to be identified - and follow the European Banking Authority (EBA) Guidelines on the criteria to determine the conditions of application of Article 131(3) CRD IV in relation to the assessment of O-SIIs.

The consultation set out the PRA’s proposed approach to identifying and designating as O-SIIs those firms whose distress or failure would have a systemic impact on the UK or the EU economy or financial system due to size, importance (including substitutability or financial system infrastructure), complexity, cross-border activity, and interconnectedness.

This policy statement (PS) is relevant to all credit institutions, investment firms, EEA parent institutions, EEA parent financial holding companies and EEA parent mixed financial holding companies within the domestic financial sector at their highest level of consolidation in the United Kingdom. The content of this policy statement does not apply to EEA and third-country branches operating in the UK.

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Policy Statement

Statement of Policy - The PRA’s approach to identifying other systemically important institutions (O-SIIs)

2015 list of UK firms designated as other systemically important institutions (O-SIIs)

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