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The Basel Committee on Banking Supervision (BCBS) has developed a methodology to assess the systemic importance of banks in a global context. The methodology relies on an indicator-based measurement approach. The indicators are selected to reflect the size of banks, their interconnectedness, substitutability of their services, their global activity and their complexity.
In accordance with the BCBS Global systemically important banks: updated assessment methodology and the higher loss absorbency requirement (BCBS methodology for G-SIBs), all banks with a leverage ratio exposure measure exceeding EUR 200 billion are required to publicly disclose information containing the following indicators within four months of the financial year end.
Nordea is not considered a G-SIB as of 1 January 2020, however Nordea is subject to the disclosure requirement as a large bank with a leverage ratio exposure exceeding the abovementioned threshold.
All indicators are expressed in terms of the reporting currency except for payments activity, which is expressed in euro by applying the yearly average exchange rates for 2019.
The precise definitions of the indicators can be found in the BCBS methodology for G-SIBs and BCBS instructions for the end-2019 G-SIB assessment exercise (BCBS instructions) that the banks use to supply their indicator data to the data hub.
The indicators provided below are prepared based on the definitions outlined in the BCBS instructions. These definitions are subject to interpretation and may not be directly comparable with other disclosures by Nordea Bank. Differences may also arise as BCBS instructions require using the regulatory scope of consolidation, not the accounting consolidation circle. The reporting period is the financial year ending 31 December 2019.
General Bank Data | |
|---|---|
| Section 1: General information | |
| a. General information provided by the relevant supervisory authority
| |
| (1) Country code
| FI |
| (2) Bank name
| Nordea
|
| (3) Reporting date (yyyy-mm-dd)
| 2019-12-31
|
| (4) Reporting currency
| EUR
|
| b. General information provided by the reporting instiution
| |
| (1) Reporting unit
| 1,000,000
|
| (2) Accounting Standard
| IFRS
|
| (3) Date of public disclosure (yyyy-mm-dd)
| 2020-04-30
|
| (4) Language of public disclosure
| EN
|
| (5) Web address of public disclosure
| www.nordea.com/gsib |
Category | Category
weigthing | Individual
weighting | EURm |
|---|---|---|---|
| Size indicator | |||
| Section 2: Total exposure
| 20% | 20% | 539,240 |
| Interconnectedness indicators | |||
| Section 3: Intra-financial system assets
| 20% | 6.67% | 85,662 |
| Section 4: Intra-financial system liabilities
| 6.67% | 38,759 | |
| Section 5: Securities outstanding | 6.67% | 232,866 | |
| Substitutability/financial institution infrastructure indicators | |||
| Section 6: Payments made in the reporting year (excluding intragroup payments) | 20% | 6.67% | 19,065,575 |
| Section 7: Assets under custody | 6.67% | 711,000 | |
| Section 8: Underwritten transactions in debt and equity markets | 6.67% | 1,148 | |
| Complexity Indicators | |||
| Section 9: Notional amount of Over-the-Counter (OTC) derivatives | 20% | 6.67% | 6,431,272 |
| Section 10: Trading and available-for-sale securities | 6.67% | 11,185 | |
| Section 11: Level 3 assets | 6.67% | 2,690 | |
| Cross-Jurisdictional Activity Indicators | |||
| Section 12: Cross-jurisdictional claims | 20% | 10% | 375,215 |
| Section 13: Cross-jurisdictional liabilities | 10% | 187,396 | |