Details about "Systemically Important Institutions" - FMA Österreich
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Details about “Systemically Important Institutions”

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The identification of systemically important institutions (SIIs) in Austria is based in a first upon the mechanical calculation of scores pursuant to the scoring method defined in the EBA Guidelines EBA/GL/2014/10 (Guidelines on the criteria to determine the conditions of application of Article 131 (3) of Directive 2013/36/EU (CRD) in relation to the assessment of other systemically important institutions (SIIs)). These Guidelines define ten indicators, which are to be calculated for all credit institutions on the basis of consolidated data (maximum score 10,000 points). All institutions with a score of over 275 (threshold) were classified as being of systemic importance, since on the basis of the criteria of i) size, ii) relevance for the economy of the European Union or the relevant Member State, iii) significance of cross-border activities, and iv) the institution’s interconnectedness with the financial system, they form a significant factor of influence for the stability of the financial system in Austria, and therefore in the event of their failure present a significant risk for the stability of the financial system in Austria and the European Union. In a second step the national authorities should then assess whether other institutions are also to be classified as SIIs.

On the basis of a recommendation issued by the Financial Market Stability Board (FMSB), and taking into consideration an expert opinion by the OeNB, the FMA has identified further indicators that appropriately capture systemic risk. The indicators that are based on EU-wide values are additionally also calculated on the basis of data for Austria only. Furthermore the findings of the credibility and feasibility test as well as the analysis of the potential systemic risks arising from a deposit guarantee pay-out and regarding the ability of allowing individual banks to become insolvent by the bank resolution authority are also considered. The indicator about “eligible deposits covered by the deposit guarantee system” pursuant to Annex 2 of EBA/GL/2014/10 is applied as defined in Title III of EBA/GL/2014/10, since institutions that have a high level of eligible deposits may in particular cause a particular burden or over-burdening of the system in the event of payment difficulties. In order to take this circumstance into account, the threshold of 3.50% of the share of eligible deposits for classification as a systemically important institution (which corresponds to a value of 350 basis points). This corresponds to the value that is also stipulated in EBA/GL/2014/10 as the threshold for mandatory indicators for classification as systemically important institutions.

Dependent on the score, or other additional indicators being exceeded, three relevance levels have been defined for Austria, in order to be able to differentiate accordingly between the applicable level of the buffer rates. An expert opinion by the OeNB has recommended, taking into consideration additivity as a result of the transposition of Directive (EU) 2019/878 and uncertainty in light of the coronavirus crisis, to adapt the capital buffer rates for the respective relevance levels accordingly.

The identified SIIs are determined by the FMA by means of an administrative decision.

Relevance LevelPoints scoreO-SII Buffer prior to consideration of additivity and uncertaintyO-SII Buffer after consideration of additivity and uncertainty
1275-6361.0% CET10.5% CET1
2637-9991.5% CET10.75% CET1
3≥1,0002.0% CET11.0% CET1
Relevance levels and O-SII buffer after consideration of additivity and uncertainty

Further information:

Law

Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC

EBA Guidelines (EBA/GL/2014/10) on the criteria to determine the conditions of application of Article 131(3) of Directive 2013/36/EU (CRD) in relation to the assessment of other systemically important institutions

Capital Buffer Regulation 2021 (KP-V; Kapitalpuffer-Verordnung)

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