EBA updates list of Other Systemically Important Institutions (O-SIIs)

03 April 2020

The European Banking Authority (EBA) updated today the 2019 list of Other Systemically Important Institutions (O-SIIs) in the EU. O-SIIs - those institutions which, along with Global Systemically Important Institutions (G-SIIs), are deemed systemically important - have been identified by the relevant authorities across the Union according to harmonised criteria provided by the EBA Guidelines. This list also reflects the additional capital buffers that the relevant authorities have set for the identified O-SIIs. The list of O-SIIs is available also in a user-friendly visualisation tool, including the information on O-SII buffers assigned to identified institutions across the EU.

The criteria to identify O-SIIs, as laid down in the EBA Guidelines, are based on  the size, importance, complexity (or cross-border activities) and interconnectedness of institutions.

The EBA Guidelines provide flexibility for relevant authorities to apply their supervisory judgment when deciding to include other institutions which might have not been automatically identified as O-SIIs. This approach allows for the assessment of all financial institutions across the EU in a comparable way, whilst still not excluding those firms that may be deemed systemically important for one jurisdiction on the basis of certain specificities. 

The list of O-SIIs is disclosed on an annual basis, along with any Common Equity Tier 1 (CET1) capital buffer requirements, which may need to be set or reset. Higher capital requirements will become applicable once relevant authorities decide to set institution-specific buffer requirements as a consequence of this O-SII identification.

The EBA acts as the single point of disclosure for the list of O-SIIs across the EU, while each relevant authority discloses information for its respective jurisdiction, along with further details on the underlying rationale and identification process. This additional information is key for understanding the specific features of each O-SII and get some insight in terms of supervisory judgment, optional indicators used, buffer decisions and phase-in implementation dates.

 

EBA extends call for expression of interest for its new Banking Stakeholder Group

03 April 2020

In light of the turbulence caused by the Covid-19 pandemic, and the need for potential applicants to focus on other issues, the European Banking Authority (EBA) has decided to extend the deadline of the call for expression of interest for its Banking Stakeholder Group (BSG) to 17 April at 23.59 CET. This extension will allow more time to all interested stakeholders to apply.

The EBA had announced on 6 March its call for applicants for its BSG in the framework of the ESAs Review Process.

EBA publishes updated List of Reporting Institutions for 2020

02 April 2020

The European Banking Authority (EBA) published today a revised list of the Reporting Institutions for 2020, for the purpose of supervisory reporting pursuant to EBA Decision 2015/130. The EBA runs this exercise on an annual basis, where Competent Authorities annually review which institutions under their supervisory remit fulfil the criteria for sending supervisory and financial reporting data to the EBA. The exercise is based on the institutions’ year-end data, and the updated list is published around the first quarter of each year. 

EBA launches call for papers for its 2020 Policy Research Workshop

19 March 2020

The European Banking Authority (EBA) launches a call for research papers in view of the 2020 Policy Research Workshop taking place on 12-13 November 2020 in Paris on the topic "New technologies in the banking sector – impacts, risks and opportunities". The submission deadline is 10 July 2020.

The workshop aims at bringing together economists and researchers from supervisory authorities and central banks, as well as leading academics, to discuss the future of new technologies in the banking sector and what measures could be taken by policy makers to improve and reap further benefits while ensuring the proper assessment of micro-prudential risks, vulnerabilities and preserving financial stability. Another focus will be on cyber risks, an important area of operational risk which is becoming increasingly relevant for credit institutions of all types.

In preparation for the workshop, the EBA invites the submission of policy oriented, preferably empirical, research papers on the new technologies in the banking sector. Researchers from supervisory authorities and central banks are particularly encouraged to submit their papers for presentation.

Interested parties can download the detailed call for papers which includes specific proposed topics for the papers, composition of the programme committee and contact details for the submission of papers. The submission deadline is 10 July 2020.

Contributors will be notified by early September 2020.

EBA issues updated list of validation rules

10 March 2020

The European Banking Authority (EBA) issued today a revised list of validation rules in its Implementing Technical Standards (ITS) on supervisory reporting, highlighting those which have been deactivated either for incorrectness or for triggering IT problems. Competent Authorities throughout the EU are informed that data submitted in accordance with these ITS should not be formally validated against the set of deactivated rules.

EBA launches consultation to update methodology to identify G-SIIs

05 March 2020

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.

links

EBA tightens measures to mitigate spreading of the coronavirus

05 March 2020

  • The EBA reviewed its Coronavirus readiness plan and cancelled all physical meetings scheduled between 6 and 14 March 2020 at its premises.
  • EBA staff work-related travel planned in the next week has been cancelled, with the exception of critical business meetings. 
  • EBA continues to require that all its staff members travelling from any affected areas work remotely for 14 days.

The European Banking Authority (EBA) announced today additional measures to mitigate the spreading and risk of infection with the coronavirus. These measures will affect all stakeholders participating in external meetings hosted by the EBA and work travel of all EBA staff with the exception of critical business meetings.

The EBA has decided to cancel all physical meetings with external participants scheduled to take place at its premises in Paris from 6 to 14 March 2020, regardless of the place of departure or origin of meeting attendees. 

Similarly, the EBA has also decided to cancel all work-related travel of EBA staff planned from 6 to 14 March 2020, until further assessment of the developments. 

All EBA staff members returning from any of the affected areas (China (Mainland China, Hong Kong, Macau), Iran, Singapore, South Korea, and Lombardy, Veneto Emilia-Romagna regions in Italy) have been requested to take precautionary measures and work remotely for 14 days, in an effort to minimise the coronavirus spread .

EBA issues Opinion on measures to address macroprudential risk following notification by National Bank of Belgium (NBB)

03 March 2020

The European Banking Authority (EBA) published today an Opinion following the notification by the National Bank of Belgium (NBB) of its intention to extend a measure introduced in 2018 regarding the use of Article 458 of the Capital Requirements Regulation (CRR). The measure is primarily driven by persistent macroprudential risks in the Belgian economy related to a substantial level of systemic risk in banks’ mortgage portfolios and of macrofinancial vulnerabilities. Based on the evidence submitted, the EBA does not object to the extension of the proposed measure, which will be applied from 1 May 2020 to 30 April 2021.

The measure for that the extension is intended to increase the risk weights for internal ratings based (IRB) banks’ retail exposures secured by residential immovable property located in Belgium and consists of two components. The first component imposes a 5-percentage-point risk weight add-on for IRB banks’ exposures to mortgage loans. The second component further increases the risk weights as a function of the risk profile of the IRB bank’s mortgage portfolio by applying a multiplier of 1.33 on the (microprudential) risk weight.

In its Opinion, addressed to the Council, the European Commission and the NBB, the EBA acknowledges, in line with the European Systemic Risk Board (ESRB), the sustained high level of systemic risk in Belgian banks’ mortgage portfolios and the persistence of macroprudential vulnerabilities in the Belgian financial system. The combined increase in house prices and debt levels may pose a threat to the financial stability of banks in Belgium in the event of a downturn.

In light of this conclusion, the EBA does not object to the extended deployment, by the NBB, of the proposed macroprudential measures, which will be applied from 1 May 2020 to 30 April 2021.

Background

Already in its Opinion issued on 23 February 2018, the EBA did not object to the adoption of this measure, taking into consideration its effect on increasing the resilience of the Belgian banking sector. For more information on this EBA Opinion, please see https://eba.europa.eu/eba-issues-opinion-on-measures-to-address-macroprudential-ri-3 .

links

EBA updates list of institutions involved in the 2020 supervisory benchmarking exercise

27 February 2020

The European Banking Authority (EBA) published today an updated list of institutions, which have a reporting obligation for the purpose of the 2020 EU supervisory benchmarking exercise. The EBA runs this exercise leveraging on established data collection procedures and formats of regular supervisory reporting and assists Competent Authorities in assessing the quality of internal approaches used to calculate risk weighted exposure amounts.

EBA acknowledges adoption of amended supervisory reporting standards by the European Commission

14 February 2020

The European Banking Authority (EBA) acknowledged today the adoption by the European Commission of the Implementing Act amending Regulation (EU) No 680/2014 (Implementing Technical Standards on Supervisory Reporting) with regard to COREP and FINREP changes. The Implementing Act, which is based on the final draft Implementing Technical Standards (ITS) on supervisory reporting submitted by the EBA in July 2019, was adopted by the Commission on 14 February 2020 but its publication in the EU Official Journal is still pending. The amendments to the reporting framework will apply with different reference dates due to different application dates of the underlying regulatory requirements. The first reference date, concerning COREP changes, will be 31 March 2020 (reporting framework v2.9).

  • The COREP amendments concern the new securitisation framework and changes to LCR to align with the LCR amending Act;
  • The FINREP amendments concern the reporting requirements on non-performing exposures (NPE) and forbearance to allow the monitoring of reporting institutions' NPE strategies, the reporting requirements on profit and loss items and the implementation of the new International Financial Reporting Standard on leases (IFRS 16).

All the related documents published on the EBA's website have been updated to reflect the adoption of the Implementing Act (see Reporting framework 2.9).

Click here to access the Implementing Act and annexes as adopted by the European Commission.