The EBA Updates Data Used For The Identification Of Global Systemically Important Institutions (G-SIIs)

The European Banking Authority (EBA) today released an updated set of 13 indicators and supporting data for the 32 largest institutions in the European Union, each with a leverage ratio exposure measure exceeding EUR 200 billion. This comprehensive publication features the latest figures and metrics essential for recognising institutions within the Banking Union and those operating under the Single Resolution Mechanism (SRM). By serving as a centralised data hub in the disclosure process, the EBA ensures annual updates and provides user-friendly tools, making it easier for stakeholders across the EU to access and analyse this vital information.

This end-2024 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 sum for those banks’ total exposures increased by 3.4% at the end of 2024, accelerating growth from the previous 1.3% up to the end of 2023. Showing the most noticeable development from the previous year, the trading volume indicator increased by 39.7%. The indicators concerning OTC derivatives, securities outstanding, assets under custody and level 3 assets increased by 13.3%, 9.6%, 8.8% and 6.4% respectively, all renewing their highest activity volume observed since 2013. The underwriting activity indicator registered a remarkable increase, by 25% at the end of 2024, overcoming the year of 2021 as the highest value for this indicator since 2013. With similar magnitude, the trading and available for sale securities indicator rose by 26.4% at the end of 2024. The only indicator observing a downward trend up to the end of 2024 was intra-financial system liabilities, declining by 0.9%. 

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. 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 bank-specific results and buffer rate allocation, 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.