PRA is consulting on its approach to identifying other systemically important institutions (O-SIIs). It sets out the proposed criteria and methodology derived from the Capital Requirements Directive and EBA Guidelines. In particular, it seeks views on:

  • which firms can be identified as O-SIIs;
  • application of discretion allowed within EBA’s mandatory scoring methodology for O-SII identification;
  • application of a supervisory overlay to adequately capture systemic risk in the UK banking sector, and proposals to use the methodology of the PRA’s existing “potential impact” framework to inform this assessment; and
  • the timetable for O-SII identification, and publications related to O-SII identification.

The proposals cover credit institutions, investment firms and EEA parent (mixed) financial holding companies incorporated in the UK, but not to EEA and third-country branches operating in the UK. Consultation closes on 18 January 2016. (Source: PRA CP39/15 – Identifying O-SIIs)