ECB plans to enhance methodology for assessing O-SIIs capital buffers

Article summary

The European Central Bank (ECB) has issued a statement announcing its plans to enhance its floor methodology for assessing capital buffers for Other Systemically Important Institutions (O-SIIs) to incorporate a banking union perspective, considering the systemic importance of O-SIIs for the entire banking union. This addition to the existing national perspective aims to promote consistency in the loss-absorption capacity of O-SIIs and contribute to financial stability within the banking union. The enhanced methodology will be phased in from 1 January 2025, with full implementation by 1 January 2028.