The European Banking Authority (EBA) published today indicators from 28 large institutions in the EU, as provided for in the Implementing Technical Standards (ITS) and Guidelines on disclosure rules applicable to institutions whose leverage ratio exposure measure exceeds 200 billion Euro.
The ITS and Guidelines define uniform requirements for disclosing the values used during the identification and scoring process of global systemically important institutions (G-SIIs), in line with the internationally agreed standards developed by the Financial Stability Board (FSB) and by the Basel Committee on Banking Supervision (BCBS). To promote a level playing field in the EU regarding these requirements and increase transparency on the internal financial market, the current level of disclosure goes beyond the minimum standards required by the BCBS, both in terms of granularity of the disclosed information and applicable scope of institutions. Consequently, some of the group-specific templates now being published belong to institutions or EU subsidiaries that did not contribute directly to the BCBS's G-SIB exercise. The exercise covers 28 institutions whose leverage ratio exposure measure exceeds 200 billion Euro, and from 2015 data of all institutions with an exposure measure exceeding 200 billion Euro will be published.
Furthermore, the EBA will act as a central data hub in this disclosure process, thus providing a platform to aggregate data across the EU through a user-friendly excel tool. The EBA expects to disclose such data with yearly frequency, by end-July.
Legal basis and next steps
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, falls in the responsibility of national competent authorities and will take place in January 2015 for the first time. It will follow global denominators disclosure and G-SIB exercise results, expected to be published by the BCBS and the FSB, in November each year. The higher capital requirement will then apply about 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.