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

The publication covers 13 indicators used to measure systemic importance
This year’s publication includes, for the first time, one additional institution
The EBA data is published using user-friendly Excel and PowerBI tools, as well as bank-specific PDFs

The European Banking Authority (EBA) updated today the 13 systemic importance indicators and underlying data for the 33 largest institutions in the EU whose leverage ratio exposure measure exceeds EUR 200 bn. This publication includes updated numbers and 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-2023 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 1.3% at the end of 2023. The indicators for Securities Outstanding and Level 3 Assets increased by 14.9% and 12.6% respectively, both achieving the highest aggregate value since 2013. Assets under custody also observed a noticeable increase by 11.2%. The indicator for payments activity was the only one showing a decreasing trend (-3.7%) from 2022 to the end of 2023.

Background legal basis

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.