Details about "Systemically Important Institutions" - FMA Österreich
You are here: 

Details about “Systemically Important Institutions”

Jump to: Footer

The identification of systemically important institutions (SIIs) in Austria is based in a first step 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 size, significance for the Austrian and European financial sector, cross-border activities as well as their 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 “deposits guaranteed under 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.

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

Bucket 3≥1,0002.0% CET1
Bucket 2637-9991.5% CET1
Bucket 1275-6361.0% CET1

The column referring to the minimum OSII buffer threshold does yet not depict the changes resulting from the implementation of CRD V into Austrian law. So far, in Austria the higher of the respective systemic risk buffer and OSII buffer has been applied. CRD V provides for the addition of the systemic risk buffer (Art. 133 CRD V) and OSII buffer (Art. 131 CRDV). In order to prevent an increase in the effective buffer requirements merely due to the formal legal changes, the overlap of SyRB and OSII buffer is taken into account accordingly when setting the OSII buffer. A recalibration of the combined buffer requirement including the adaptations resulting from CRD V will take place at a later stage.

Further information