12 December 2013

EBA consults on methodology for 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.

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 €200 billion and which are potentially systemically relevant, will be subject to the same disclosure requirement.

Comments can be sent to the EBA by 28 February, 2014.

Full news

Consultation paper

© EBA