Buffer for global systemically important institutions

(1) The Federal Institute orders that a global systemically important institution must hold, at the consolidated level, a buffer for global systemically important institutions consisting of Common Equity Tier 1 capital. Its rate is set by the Federal Institute, in accordance with the global systemically important institution's allocation to a size class, at 1.0, 1.5, 2.0, 2.5, or 3.5 percent of the total risk exposure amount determined under Article 92(3) of Regulation (EU) No 575/2013, and is reviewed at least annually.
(2) The Federal Institute determines, in agreement with the Deutsche Bundesbank, at least annually, which institutions that are not subsidiary undertakings of an EU parent institution, an EU parent financial holding company, or a mixed EU parent financial holding company, and which EU parent institutions, EU parent financial holding companies, or mixed EU parent financial holding companies with their registered office in Germany, are, on the basis of a quantitative analysis at the consolidated level, classified as global systemically important (global systemically important institutions). Systemic importance for this purpose means the expected impact of a crisis at the global systemically important institution on the global financial market. In the quantitative analysis, the Federal Institute takes into account the following categories, each with equal weight:
1. the size of the group,
2. the cross-border activities of the group,
3. the group's interconnectedness with the financial system,
4. the substitutability of the services and financial infrastructure facilities offered by the group, and
5. the complexity of the group. Institutions and financial holding companies are required to report to the Federal Institute and the Deutsche Bundesbank, annually, the individual data needed to carry out the quantitative analysis.
(2a) The Federal Institute additionally carries out, at least annually, a quantitative analysis, on a consolidated basis, of the institutions that are not subsidiary undertakings of an EU parent institution, an EU parent financial holding company, or a mixed EU parent financial holding company, and of the EU parent institutions, EU parent financial holding companies, and mixed EU parent financial holding companies with their registered office in Germany. In the analysis, the Federal Institute takes into account, each with equal weight,
1. the categories named in subsection (2), third sentence, points 1 and 3 to 5, and
2. the group's cross-border activities, excluding the group's activities in participating Member States within the meaning of Article 4 of Regulation (EU) No 806/2014. The indicators for the categories named in the second sentence, point 1, correspond to the indicators determined under subsection (2), third sentence. Institutions and financial holding companies are required to report to the Federal Institute and the Deutsche Bundesbank, annually, the individual data needed to carry out the quantitative analysis.
(3) Depending on the results of the quantitative analysis under subsection (2), the Federal Institute allocates a global systemically important institution to one of at least five size classes. By way of derogation, the Federal Institute may, on the basis of the result of a supplementary analysis of systemic importance,
1. allocate a global systemically important institution to a higher size class,
2. classify institutions that are not subsidiary undertakings of an EU parent institution, an EU parent financial holding company, or a mixed EU parent financial holding company, and EU parent institutions, EU parent financial holding companies, and mixed EU parent financial holding companies with their registered office in Germany, that were not identified as a global systemically important institution in the course of the quantitative analysis, as such and allocate them to one of the size classes, or
3. move the global systemically important institution from a higher size class to a lower size class, provided that in doing so it takes into account the Single Resolution Mechanism and bases this on the overall result of the quantitative analysis under subsection (2a).
(4) Institutions whose total exposure measure within the meaning of Article 429(4) of Regulation (EU) No 575/2013 exceeds the value of EUR 200 billion are required to publish, annually, within four months of the close of each financial year, but no later than 31 July, on their website and in the medium provided for under Article 434 of Regulation (EU) No 575/2013 for publishing the particulars required under Part Eight of that Regulation, the values of the indicators underlying the quantitative analysis. Publication is carried out electronically in accordance with the requirements in Article 6a of Implementing Regulation (EU) 2021/637, as amended on 30 November 2022, in accordance with the templates and particulars on the European Banking Authority's website. The Federal Institute transmits the templates to the European Banking Authority for central publication on its website. In ordering and reviewing the buffer for global systemically important institutions under subsection (1), and in classifying institutions as global systemically important and allocating them to a size class under subsections (2) and (3), the existing requirements and recommendations of the European Banking Authority and the European Systemic Risk Board in this regard are to be taken into account at the Federal Institute's discretion.
(4a) The institutions named in subsection (4) are required to complete, annually, the data collection templates of the Basel Committee on Banking Supervision and send them to the Federal Institute and the Deutsche Bundesbank. The Deutsche Bundesbank transmits the completed data collection templates to the Basel Committee on Banking Supervision. The Federal Institute may also forward the completed data collection templates of the Basel Committee on Banking Supervision to the European Banking Authority.
(5) The Federal Institute informs the European Systemic Risk Board and the institutions classified as global systemically important of the decisions under subsections (1), (2), and (3), and publishes information on the existence of an order, and the rate of the buffer for global systemically important institutions ordered, as well as a list of the institutions classified as global systemically important. Where the conditions for an allocation under subsection (3), second sentence, are met, the notification also includes a complete statement of reasons for exercising, or not exercising, the discretion granted there.
(6) Further particulars are set out in the statutory instrument under section 10(1), first sentence, point 5(c).