The Basel Committee on Banking Supervision (BCBS) is consulting on a technical amendment to the Basel Framework to reflect a new process reviewing the global systemically important bank (G-SIB) assessment methodology. BCBS annually assesses the systemic importance of global banks using an indicator-based methodology. It is now planning to replace the existing three-year review cycle of the assessment methodology with a process of ongoing monitoring and review. Comment period for this consultation ends on September 03, 2021.
The proposed process will include monitoring the:
- Recent developments in techniques or new indicators that can be used for the assessment of systemic risk
- Emerging evidence on the effectiveness of the G-SIB regime
- Structural changes that could impact the effectiveness of the regime
As part of this monitoring, BCBS will consider the roles of branches and subsidiaries and alternative methodologies for the substitutability category that would allow the cap to be removed. Only if this monitoring work reveals evidence of material unintended consequences or material deficiencies with respect to the objectives of the framework will the Basel Committee consider changes to the regime.
Comment Due Date: September 03, 2021
Keywords: International, Banking, Basel, G-SIB, G-SIB Assessment, Systemic Risk, BCBS
Across 35 years in banking, Blake has gained deep insights into the inner working of this sector. Over the last two decades, Blake has been an Operating Committee member, leading teams and executing strategies in Credit and Enterprise Risk as well as Line of Business. His focus over this time has been primarily Commercial/Corporate with particular emphasis on CRE. Blake has spent most of his career with large and mid-size banks. Blake joined Moody’s Analytics in 2021 after leading the transformation of the credit approval and reporting process at a $25 billion bank.
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