The European Banking Authority (EBA) has updated its list of Other Systemically Important Institutions (O-SIIs)

The European Banking Authority (EBA) has updated its list of Other Systemically Important Institutions (O-SIIs). In Lithuania, four banks are included: SEB Bank, Swedbank, Artea Bank, and Revolut Bank.

These banks play a key role in the country’s financial system because of their size and importance to the economy. As a result, they are subject to stricter supervision and higher capital requirements.

From a deposit insurance perspective, this is especially important because these banks hold the largest share of insured deposits. Their ability to continue operating smoothly helps support confidence in the financial system.

The more important a bank is to the financial system, the more safeguards are put in place to reduce the risk of failure. If a failure were ever to occur, resolution tools and EU resolution funds would be used first to maintain critical banking services and limit disruption to the wider economy.

According to EBA data, there are 172 Other Systemically Important Institutions (O-SIIs) across the European Union.

More information: https://www.eba.europa.eu/publications-and-media/press-releases/eba-updates-list-other-systemically-important-institutions-2.