On Aug. 1, EBA proposed amendments to disclosure guidelines.
EBA announced it is consulting on amendments to its guidelines on specification and disclosure of systemic importance indicators, proposing to updating annually the annex which replicates Basel Committee on Banking Supervision (BCBS) data template.
EBA methodology for identifying global systemically important institutions (G-SIIs) follows BCBS's approach for identifying global systemically important banks (G-SIBs).
In Jan. 2023, the BCBS published a new data template with revisions for the 2023 identification exercise, which was based on end-2022 business year data.
For consistency between internationally agreed standards, EU regulatory framework, EBA guidelines annex amended to replicate yearly updated Basel reporting template.
In addition, following last review of EBA guidelines on specification and disclosure of systemic importance indicators, which introduced new paragraph 10a on SRM cross-jurisdictional indicators, the guidelines introduce clarifications for the Single Rulebook.
The Single Rulebook should be used to identify relevant cross-jurisdictional indicators concerning SRM jurisdictions, which should be reported and disclosed, without being considered memorandum or ancillary items or indicators for the EU.
For practical reasons, data instructions issued by BCBS, for G-SIB assessment reporting, were included in first version of the guidelines, as part of the annex.
Those were deleted from the annex of the guidelines in their first review in 2016, but guidance to follow them when filling the template, as on the EBA website, was left.
It is still expected these instructions are followed when filling template in the annex.
When following such instructions, specifications, SRM cross-jurisdictional data or indicators are also not to be considered as memorandum or ancillary items/indicators.
Thus, a clearer reference to those is now introduced in the guidelines, on EBA website.
EBA publishes annual updates to these instructions, specifications on its website.
EBA explained that it expects the instructions to be followed by all groups and credit institutions that exceed the materiality threshold defined in the guidelines.
Due to the fact the amendments to the guidelines were already expected, but also their limited and technical nature, the consultation period will last for 1 month.
Next Steps
Guidelines will be translated into the official EU languages, published on EBA website.
The deadline for competent authorities to report whether they comply with the guidelines will be two months after the official publication of the translations.
Effectiveness
The deadline for comments on the consultation is Sep. 1, 2023.
Dec. 2023 Revised Guidelines Published
On Dec. 20, 2023, EU EBA published its updated Guidelines on the specification and disclosure of systemic importance indicators, which are applied by the 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 data on G-SIIs on a yearly basis and provides user-friendly tools to aggregate it across the EU.
Following revisions in 2022 to consider recognition of the European Banking Union specificities within BCBS framework for global systemically important bank (G-SIBs).
Guidelines introduce additional changes and clarifications regarding indicators relevant for the identification process of global systemically important institutions (G-SIIs).
The revised Guidelines Annex includes the Basel reporting template as of end-2022.
Guidelines will apply from not earlier than two months after publication of translations.
A consolidated version of the Guidelines is also available.
Mar. 2024 Translations, Compliance Date
On Mar. 19, 2024, EU EBA published translations of Guidelines on the specification and disclosure of systemic importance indicators; compliance date set as May 20, 2024.
