Sat. Feb 4th, 2023

29 September 2022

  • For the first time the EBA is publishing data items specific to banks headquartered in the Banking Union
  • The publication covers 13 indicators, including the recently added trading volume indicator and updated data for the 30 largest institutions in the EU
  • The data is accompanied by user-friendly tools and bank-specific PDFs

For the first time in the context of the G-SII identification methodology and buffer rates allocation, the European Banking Authority (EBA) today disclosed data items specific to the recognition of the Banking Union and of institutions that are part of the Single Resolution Mechanism. Today’s publication covers 13 indicators and updated underlying data for the 30 largest institutions in the EU whose leverage ratio exposure measure exceeds EUR 200 bn. 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-2021 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[1] increased by 3.3% to EUR 20 992 billion at the end of 2021. Intra-financial system assets, assets under custody and over-the-counter derivatives increased by 37.5%, 12.2% and by 9.6%, respectively, accounting for the largest increase since 2013. Payments activity increased by 9.4%, while level 3 assets showing the largest development across all indicators with an increase of 96.3%, rising to an aggregate value above EUR 258 billion. Cross-jurisdictional liabilities and claims both increased by 19.5% and 12.3%, respectively. No indicators observed a decrease since end-2020 figures.

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/2022/12, 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.
 [1] Total exposures measured as for the leverage ratio.
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