On July 18, 2014, the EBA began a consultation on proposed Guidelines for national regulators to assess whether a firm should be classified as an ‘other’ systemically important institution (“O-SII”). Under the CRR, a national regulator may require an O-SII to hold an additional buffer of up to 2 percent of Common Equity Tier 1 capital. The proposed Guidelines establish a two-step process for the determination of whether an institution is an O-SII: (i) using a set of mandatory quantitative indicators; and (ii) using the supervisory judgment of the national regulator. The consultation is open until October 18, 2014.
The consultation paper is available at: http://www.eba.europa.eu/regulation-andpolicy/own-funds/guidelines-on-criteria-to-to-assess-other-systemicallyimportant-institutions-o-siis-/-/regulatory-activity/consultation-paper.