EBA publishes indicators from global systemically important institutions on disclosure rules

The European Banking Authority (EBA) published today indicators from 36 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 on disclosure rules 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 to 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 published today belong to institutions that did not contribute directly to the BCBS’s exercise for global systemically important banks (G-SIBs).

This year’s data covers 36 institutions whose leverage ratio exposure measure exceeded 200 billion Euro by the end of 2015. The EBA acts 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 will continue to disclose this data on a yearly basis.

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 be updated by December 15. 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.

The EBA statement and related information can be found here.

Lavanya Rathnam

Lavanya Rathnam is an experienced technology, finance, and compliance writer. She combines her keen understanding of regulatory frameworks and industry best practices with exemplary writing skills to communicate complex concepts of Governance, Risk, and Compliance (GRC) in clear and accessible language. Lavanya specializes in creating informative and engaging content that educates and empowers readers to make informed decisions. She also works with different companies in the Web 3.0, blockchain, fintech, and EV industries to assess their products’ compliance with evolving regulations and standards.

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