On 11 February 2021, the European Commission published a Delegated Regulation amending Delegated Regulation (EU) No 1222/2014 supplementing the Capital Requirements Directive IV (CRD IV) with regard to regulatory technical standards (RTS) for the specification of the methodology for the identification of global systemically important institutions and for the definition of subcategories of global systemically important institution.
The Delegated Regulation amends Commission Delegated Regulation (EU) No 1222/2014 which specifies the methodology for the identification of global systemically important institutions (G-SIIs). The methodology set out in that Regulation closely follows the approach of the Basel Committee on Banking Supervision (BCBS) for identifying global systemically important banks (G-SIBs). The list of EU G-SIBs identified by the BCBS and the G-SIIs identified by Member States’ authorities have to date been identical. The G-SII identification framework comprises for the first time an additional EU methodology to allocate G-SII buffer rates to identified G-SIIs. Relevant authorities wishing to make use of the additional EU methodology must provide clear and observable evidence of the proposed decisions under the sound supervisory judgement principle.
The Delegated Regulation will enter into force on the day following its publication in the Official Journal of the EU. Certain provisions in the Delegated Regulation apply from 1 December 2021.