Updating Identification of Systemically Important Banks

Summary

The European Parliament has decided not to object to a new regulation that updates how the EU identifies globally significant financial institutions, ensuring alignment with international standards for the 2021 assessment cycle.
9 10.03.2021
Other
finance
economy
financial institutions and credit

Key points

  • The decision updates the methodology used to identify and categorize globally significant financial institutions in the EU.
  • The update aligns European rules with the revised standards published by the Basel Committee on Banking Supervision.
  • The regulation incorporates changes from recent updates to EU banking directives regarding supervisory measures and capital conservation.
  • Implementation is intended to be completed before the 2021 identification exercise begins in April 2021 to ensure legal certainty.
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