G-SIB/G-SII: Systematic importance indicators

Indicators for assessing systemically important banks

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: revised 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 above-mentioned 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 2021. 

The precise definitions of the indicators can be found in the BCBS methodology for G-SIBs and BCBS instructions for the end-2021 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 2021.

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)                                                             2021-12-31
(4) Reporting currency                                                                          EUR
b. General information provided by the reporting institution
 
(1) Reporting unit                                                                1,000,000
(2) Accounting Standard                                                                          IFRS
(3) Date of public disclosure (yyyy-mm-dd)                                                             2022-04-30
(4) Language of public disclosure                                                                             EN
(5) Web address of public disclosure                                           www.nordea.com/gsib

 

Category

Category
weighting

Individual
weighting

EURm

Size indicator
    20%    
Section 2: Total exposure       20%      545,720
Interconnectedness indicators
    20%    
Section 3: Intra-financial system assets      6.67%        78,080
Section 4: Intra-financial system liabilities      6.67%        30,226
Section 5: Securities outstanding      6.67%      226,251
Substitutability/financial institution infrastructure indicators
    20%    
Section 6: Payments made in the reporting year
(excluding intragroup payments)
     6.67% 26,981,894
Section 7: Assets under custody       6.67%      452,222
Section 8: Underwritten transactions in debt and equity markets       3.33%        81,212
Section 9: Trading Volume   3.33% 211 919
Complexity Indicators
    20%    
Section 9: Notional amount of Over-the-Counter (OTC) derivatives      6.67%   9,999,307
Section 10: Trading and available-for-sale securities       6.67%        19,650
Section 11: Level 3 assets       6.67%          3,032
Cross-Jurisdictional Activity Indicators
    20%    
Section 12: Cross-jurisdictional claims       10%      396,168
Section 13: Cross-jurisdictional liabilities       10%      213,155