Bank of England: The PRA’s approach to identifying other systemically important institutions (O-SIIs)
19 October 2015
In this consultation paper, the PRA sets out the criteria and scoring methodology it proposes to use to identify other systemically important institutions (O-SIIs).
The proposals in this consultation paper (CP) are intended to identify and designate as O-SIIs those firms whose distress or failure would have a systemic impact on the UK or the EU economy or financial system due to size, importance (including substitutability or financial system infrastructure), complexity, cross-border activity, and interconnectedness.
The Prudential Regulation Authority (PRA) is consulting on a draft statement of policy on the PRA’s approach to identifying O-SIIs. The statement sets out the criteria and scoring methodology that the PRA will use to identify O-SIIs under the CRD.
In particular, it consults on the following areas:
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which firms can be identified as O-SIIs;
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application of discretion afforded within the EBA’s mandatory scoring methodology for O-SII identification;
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application of a supervisory overlay to adequately capture systemic risk in the UK banking sector, and proposals to use the methodology of the PRA’s existing ‘potential impact’ framework to inform this assessment; and
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the timetable for O-SII identification, and publications related to O-SII identification.
This consultation closes on 18 January 2016.
© Bank of England
