The European Banking Authority (EBA) has published a final peer review report that presents the outcomes of the ongoing review exercise on the Guidelines on the criteria to determine the conditions of application of Article 131(3) of Capital Requirements Directive IV in relation to the assessment of other systemically important institutions (Guidelines).The report provides a summary of the factual results of the self-assessment by relevant authorities (RAs) of how they have implemented the Guidelines. It also presents the main results of a ‘review by peers’ including possible good practices identified through a desk-based analysis.

The peer review exercise concludes that the majority of RAs are compliant with the Guidelines, however, the review panel found a wide range of practices in areas that were expected to have been harmonised by the guidelines. Some requirements are not consistently and comprehensively applied in all jurisdictions adversely affecting the level playing field for institutions operating in these jurisdictions and hampering the harmonisation expected in a single market.

The panel review encourages the dissemination of best practices observed in the course of the peer review through the publication of the report and suggests that action should be taken in areas where the review panel sees some merit in harmonisation, such as competent authorities’ notification and disclosure obligations. The review panel also considers that further guidance is highly desirable to reduce variation in the calibration and use of the other systemically important institution buffer.

View EBA peer review report on guidelines on criteria for identifying O-SIIs, 15 November 2017