Semi-strong market efficiency and O-SII buffer: Difference between pages

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imported>Doug Williamson
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One form of the Efficient Market Hypothesis (EMH).
''Bank supervision - capital adequacy - CRD IV''.
The EMH is the general hypothesis that markets operate efficiently.  In other words that assets are fairly priced by the market mechanism to incorporate available information.


The O-SII buffer is an additional capital buffer required of Other Systemically Important Institutions (O-SIIs) under the European Union's CRD IV.


There are three forms of potential efficiency: the weak form, the semi-strong form and the strong form.


For relevant institutions it is likely to be in the range of 0% to 2.0% of risk weighted assets (RWAs).


The semi-strong form states that prices react to public information so that any form of analysis using publicly available information cannot be successful in consistently generating excess returns.




== See also ==
== See also ==
* [[Closed period]]
* [[Capital]]
* [[Efficient market hypothesis]]
* [[Capital buffer]]
* [[Insider dealing]]
* [[Capital Conservation Buffer]]
* [[Strong form efficiency]]
* [[Countercyclical buffer]]
* [[Weak form efficiency]]
* [[CRD IV]]
* [[G-SII]]
* [[G-SII buffer]]
* [[Liquidity buffer]]
* [[O-SII]]
* [[Risk Weighted Assets]]
* [[Systemic Risk Buffer]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]

Latest revision as of 20:10, 3 October 2023

Bank supervision - capital adequacy - CRD IV.

The O-SII buffer is an additional capital buffer required of Other Systemically Important Institutions (O-SIIs) under the European Union's CRD IV.


For relevant institutions it is likely to be in the range of 0% to 2.0% of risk weighted assets (RWAs).


See also