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Home > Prudential Regulation Authority > The PRA’s approach to identifying other systemically important institutions (O-SIIs) – CP39/15

The PRA’s approach to identifying other systemically important institutions (O-SIIs) – CP39/15

19 October 2015

Update 24 November 2015: Page 8 of this CP has been updated to replace the term ‘mixed financial holding companies’ with ‘(mixed) financial holding companies’ to align with the text elsewhere in the document.


In this consultation paper (CP), the Prudential Regulation Authority (PRA) sets out the criteria and scoring methodology it proposes to use to identify other systemically important institutions (O-SIIs). These criteria and methodology are derived from Article 131(3) of the Capital Requirements Directive (2013/36/EU) (CRD) – which requires O-SIIs to be identified- and follow the European Banking Authority (EBA) Guidelines 2014/10 on the criteria to determine the conditions of application of Article 131(3) CRD in relation to the assessment of O-SIIs.

The proposals in this 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.

This consultation is relevant to credit institutions, investment firms and EEA parent (mixed) financial holding companies incorporated in the United Kingdom. The proposals contained in this consultation do not apply to EEA and third-country branches operating in the United Kingdom.

Summary of proposals

The PRA is consulting on a draft statement of policy on the PRA’s approach to identifying O-SIIs - see Appendix 1 of the CP. 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:

(i) which firms can be identified as O-SIIs;

(ii) application of discretion afforded within the EBA’s mandatory scoring methodology for O-SII identification;

(iii) 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

(iv) the timetable for O-SII identification, and publications related to O-SII identification.


This consultation closed on 18 January 2016. Please address any comments or enquiries to

The PRA will consider the feedback received and will publish a statement of policy during 2016 Q1.

Consultation paper

The PRA’s approach to identifying other systemically important institutions (O-SIIs) – CP39/15

Final policy in relation to this consultation is available under related links.