Featured Product

    OFR G-SIB Scores Chart Shows Rising Systemic Importance of Asian Banks

    December 21, 2017

    An article by the OFR Deputy Director for Research and Analysis Stacey Schreft highlights that new data on the world’s largest banks show the increasing systemic importance of Asian banks. OFR also updated its online Global Systemically Important Bank (G-SIB) Scores Interactive Chart, along with figures showing the relative systemic importance of U.S. G-SIBs and 32 other U.S. banks that report the data. For these updates, OFR used the 2016 G-SIB data that BCBS released in November.

    The data show that systemic importance scores of several Asian banks rose for the second year in a row. The scores of Bank of China and China Construction Bank rose enough to put them in a higher capital bucket because of their increased interconnectedness and complexity. As a result, those banks will face higher capital requirements. The systemic importance scores for three Japanese G-SIBs and for Dutch-based ING went up more than the score of the Bank of China. However, their capital requirements will not change because they did not move to different buckets.

    The data reveal that U.S. banks’ systemic footprint still dominates the global totals. Eight U.S. banks are still considered global systemically important banks (G-SIBs). For U.S. non-G-SIB banks, the data continue to support the use of systemic importance metrics rather than asset size alone to set thresholds for heightened regulation. Additionally, a bank’s systemic importance is more desirable to use as a regulatory threshold than asset size alone, which could affect bank lending. The disconnect between size and systemic importance is particularly evident in the data on foreign banks’ U.S. operations. For example, the U.S. operations of Credit Suisse, Deutsche Bank, and Barclays have the three highest Basel Committee systemic importance scores of non-G-SIB U.S. banks. Yet, these firms rank lower—8th, 11th, and 10th—in asset size among non-G-SIB U.S. banks. Capital One is larger by assets than seven foreign banks’ U.S. operations with systemic importance scores higher than Capital One’s.

     

    Related Links

    Keywords: Americas, US, Banking, G-SIB, Systemic Risk, OFR

    Related Articles
    News

    PRA Revises Branch Return and Updates Guidance for Regulatory Reports

    PRA published the policy statement PS17/19, which contains the final policy related to changes in the format and content of the Branch Return Form and reporting guidance.

    September 12, 2019 WebPage Regulatory News
    News

    FINMA Outlines Treatment of Stablecoins in Supplement to Guide on ICO

    FINMA published a supplement to its initial coin offerings (ICOs) guidelines, outlining the treatment for stablecoins under the Swiss supervisory law.

    September 11, 2019 WebPage Regulatory News
    News

    Ursula von der Leyen Presents Structure of Next European Commission

    President-elect Ursula von der Leyen has presented her team and the new structure of the next European Commission.

    September 10, 2019 WebPage Regulatory News
    News

    FED Proposes to Revise and Extend Reporting Form on Systemic Risk

    FED proposed to extend for three years, with revision, the Banking Organization Systemic Risk Report (FR Y-15; OMB No. 7100-0352).

    September 10, 2019 WebPage Regulatory News
    News

    EBA Issues Revised List of Validation Rules for Reporting

    EBA published the revised list of validation rules (version 2.9) in its implementing technical standards on supervisory reporting.

    September 10, 2019 WebPage Regulatory News
    News

    Bundesbank Publishes Supplementary Validation Rules for Reporting

    Bundesbank published the updated document containing supplementary validation rules in the context of the implementation of the reporting system at national level.

    September 10, 2019 WebPage Regulatory News
    News

    APRA Licenses Xinja Bank as Authorized Deposit-Taking Institution

    APRA granted Xinja Bank Limited a license to operate as an authorized deposit-taking institution without restrictions, under the Banking Act 1959.

    September 09, 2019 WebPage Regulatory News
    News

    FDIC Proposes Revisions to Regulations on Interest Rate Restrictions

    FDIC proposed revisions to its regulations covering interest rate restrictions that apply to less than well-capitalized insured depository institutions.

    September 09, 2019 WebPage Regulatory News
    News

    EBA Intends to Clarify End-Treatment of Grandfathered Instruments

    EBA announced its intention to clarify the prudential treatment applicable to own funds instruments at the end of the grandfathering period, which expires on December 31, 2021.

    September 09, 2019 WebPage Regulatory News
    News

    IMF Releases Reports on 2019 Article IV Consultation with Saudi Arabia

    IMF published its staff report and selected issues report in context of the 2019 Article IV consultation with Saudi Arabia.

    September 09, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 3799