On 20 December 2024, the Governing Council of the European Central Bank (ECB) issued a statement concerning the ECB’s framework for assessing capital buffers of other systemically important institutions (O-SIIs).

Among other things the statement notes that:

• The ECB will use the enhanced floor methodology to assess O-SII buffers notified by the national authorities, starting from 1 January 2025.
• The framework will be capital neutral in 2025 and 2026.
• After that, the banking union floor will be increased in two increments and, as a result, the enhanced methodology will be fully phased in as of 1 January 2028.
• The ECB will monitor the application of the enhanced floor methodology, taking into consideration developments in the banking union and in European financial regulation.