EBA proposes appropriate methodology to calibrate O-SII buffer rates

22 December 2020

Metadata
Provider: 
EBAEBA
URL: 
https://www.eba.europa.eu/eba-proposes-appropriate-methodology-calibrate-o-sii-buffer-rateshttps://www.eba.europa.eu/eba-proposes-appropriate-methodology-calibrate-o-sii-buffer-rates
Retrieved on: 
Sunday, January 10, 2021
Information
Tags: 
Organizations, Articles, Eurozone, Continents, European Union, Canary Wharf, European Banking Authority, Euro, Data buffer
Summary
Key Points: 
  • 22 December 2020

    The European Banking Authority (EBA) proposed today the implementation of an EU-wide floor methodology to calibrate buffer rates of Other Systemically Important Institutions (O-SIIs).

  • The proposed methodology included in the Report aims at strengthening the stability of the banking sector and avoiding the under-calibration of O-SII capital buffer rates, while allowing the relevant authorities to consider national banking sector specificities.
  • National authorities will still retain the ability to set higher O-SII buffer rates than the prescribed floor and are encouraged to do so where deemed appropriate.
  • At the moment, there is no harmonised methodology at EU level to calibrate O-SII buffer rates.
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