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EBA updates criteria for global szstemic banks. Photo by Mohamed_hassan on Pixabay

21 August 2023

This year’s publication includes, for the first time, two additional institutions. The publication covers 13 indicators used to measure systemic importance. The data is accompanied by user-friendly tools and bank-specific PDFs

The European Banking Authority (EBA) updated today the 13 systemic importance indicators and underlying data for the 32 largest institutions in the EU whose leverage ratio exposure measure exceeds EUR 200bn. This disclosure includes updated data items specific to the recognition of the Banking Union and of institutions that are part of the Single Resolution Mechanism. 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-2022 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 increased by 0.7% to EUR 21 135 billion at the end of 2022. Over-the-counter derivatives and payments activity increased by 12% and 10.9% respectively, both achieving the highest value since 2013. Intra-financial system liabilities and cross-jurisdictional liabilities increased by 5.9% and 5.2%, which for the latter indicator means reaching the highest value since 2013. Level 3 assets, underwriting activity and assets under custody were the only indicators showing a decreasing trend from 2021 to end of 2022, by 34.2%, 20% and 12.6% respectively.

Background legal basis and next steps
  • The identification of a G-SII, which leads to higher capital buffer requirements, falls under the responsibility of national competent authorities and this process is updated by December 15 every year. The identification is based on the disclosure of global denominators and G-SIB exercise results, which are expected to be published by the BCBS and the FSB in November each year. Any higher capital buffer requirements will then apply after about one year from the publication by competent authorities of banks’ scoring results, thus allowing institutions enough time to adjust to the new buffer requirement.
  • The EBA Guidelines on disclosure of G-SIIs, as amended by EBA/GL/2022/11, define uniform requirements for disclosing the values used during the identification and scoring process of G-SIIs, in line with the internationally agreed standards developed by the BCBS and the FSB. Having in mind the G-SIB assessment methodology review announced by the Basel Committee on the 31st of May 2022, the EBA supports the disclosure by EU authorities of the cross-jurisdictional indicators and underlying data items needed to calculate the parallel set of scores specific to European Banking Union banks.
  • To promote a level playing field in the EU and to increase transparency in 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 currently published belong to institutions that have not contributed directly to the BCBS’s G-SIB exercise.
  • The Regulatory Technical Standards (RTS) on the specification of the methodology for the identification and definition of subcategories of G-SIIs, and Guidelines on disclosure of G-SIIs have been developed in accordance with Directive 2013/36/EU (Capital Requirements Directive – CRD IV) on the basis of internationally agreed standards, such as the framework established by the BCBS and the FSB.
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