The UK's Prudential Regulation Authority
("PRA") has issued a policy statement on its approach to
identifying other systemically important institutions
("O-SIIs"). The statement is relevant to
all credit institutions, investment firms, EEA parent institutions,
EEA parent financial holding companies and EEA parent mixed
financial holdings companies within the domestic financial sector
at their highest level of consolidation in the United Kingdom. The
proposals contained in the consultation and the policy statement do
not apply to branches operating in the UK.
The statement provides feedback to responses to a PRA
consultation paper as to which firms can be identified as O-SIIs;
application of discretion afforded within the European Banking
Authority's mandatory scoring methodology for O-SII
identification; application of a supervisory overlay to
capture adequately systemic risk in the UK banking sector;
proposals to use the methodology of the PRA's existing
potential
