PS13/23 – Updating UK Technical Standards on the identification of global systemically important institutions (G-SIIs)

On October 24, 2023, the Bank of England (BoE) released a policy statement (PS13/23 as regards the update of UK technical standards on the identification of Global Systemically Important Institutions (G-SIIs). This statement follows a corresponding consultation earlier this year in which the Bank, or better its Prudential Regulation Authority (PRA), sought changes to the standards to align the UK’s approach with the changes implemented by the Basel Committee for Banking Supervision (BCBS) in 2022 regarding the assessment of systemic importance for global banks (please see EventID 22444 for a detailed description of the proposal).
The policy statement now implements the changes as proposed, without any changes to the draft version. As the PRA only received one comment on the proposed modifications – which strongly supported the proposed adjustments – no further adjustments are deemed necessary by the regulator. Thus, the changes as noted in the draft version will be implemented as is with an effective date of October 31, 2023.
In brief, the adjustments include the introduction of a new indicator, namely „Trading Volume“, under the „substitutability / financial institution infrastructure“ category, the revision of indicator weights to reflect this addition, the consideration of insurance subsidiaries‘ activities in the assessment, and the elimination of outdated transitional provisions from the framework’s initial implementation in 2015.