Featured Product

    FSB Issues List of G-SIBs for 2017

    November 21, 2017

    FSB published the 2017 list of global systemically important banks (G-SIBs). To identify the G-SIBs, FSB used end-2016 data and an assessment methodology designed by BCBS. Additionally, FSB in consultation with IAIS and national authorities, has decided not to publish a new list of global systemically important insurers (G-SIIs) for 2017. The policy measures set out in FSB’s 2016 communication on G-SIIs, as updated in February 2017, which concerns the higher loss absorbency (HLA) standard, will continue to apply to the firms listed in the 2016 communication.

    The list comprises 30 banks and the total number of G-SIBs remain the same as in 2016. However, one bank (Royal Bank of Canada) has been added to the list of G-SIBs identified in 2016 while one bank (Groupe BPCE) has been removed from the list. FSB member authorities apply the following requirements to G-SIBs:

    • Higher capital buffer. There have been a number of changes to the position of banks in relation to the buckets of higher capital buffers that national authorities require banks to hold in accordance with international standards.1 Compared with the 2016 list of G-SIBs, two banks moved to a higher bucket: Bank of China and China Construction Bank moved from bucket 1 to 2. Three banks moved to a lower bucket: Citigroup moved from bucket 4 to 3, BNP Paribas moved from bucket 3 to 2 and Credit Suisse moved from bucket 2 to 1. These changes reflect changes in underlying activity and the use of supervisory judgment.
    • Total loss-absorbing capacity (TLAC). G-SIBs are required by national authorities to meet the TLAC standard, along with the regulatory capital requirements set out in the Basel III framework. The TLAC standard will be phased-in from January 01, 2019 for G-SIBs identified in the 2015 list (provided that they continue to be designated as G-SIBs thereafter).
    • Resolvability. These include group-wide resolution planning and regular resolvability assessments. The resolvability of each G-SIB is also reviewed in a high-level FSB Resolvability Assessment Process (RAP) by senior regulators within the firms’ Crisis Management Groups.
    • Higher supervisory expectations. These include heightened supervisory expectations for risk management functions, risk data aggregation capabilities, risk governance, and internal controls.

     

    Related Links

    Keywords: International, Banking, Insurance, G-SIB, Basel III, TLAC, HLA, FSB

    Featured Experts
    Related Articles
    News

    APRA Publishes Approach to Regulating and Supervising GCRA Risks

    APRA published an information paper that sets out a more intensive regulatory approach to transform governance, culture, remuneration, and accountability (GCRA) practices across the prudentially regulated financial sector.

    November 19, 2019 WebPage Regulatory News
    News

    IAIS Publishes Application Paper on Recovery Planning

    IAIS published the final application paper on recovery planning, along with the resolution of comments on the draft application paper.

    November 18, 2019 WebPage Regulatory News
    News

    FSB Publishes Summary of November Meeting of RCG for MENA Region

    FSB published a summary of the November meeting of the Regional Consultative Group (RCG) for Middle East and North Africa (MENA).

    November 17, 2019 WebPage Regulatory News
    News

    EBA Single Rulebook Q&A: Second Update for November 2019

    EBA updated the Single Rulebook question and answer (Q&A) tool with answers to eight questions that relate to the Bank Resolution and Recovery Directive (BRRD) and the Capital Requirements Regulation and Directive (CRR and CRD).

    November 15, 2019 WebPage Regulatory News
    News

    FASB Delays Effective Dates for CECL, Leases, and Hedging Standards

    FASB issued two Accounting Standards Updates finalizing the delays in effective dates for standards on current expected credit losses (CECL), leases, hedging, and long-duration insurance contracts.

    November 15, 2019 WebPage Regulatory News
    News

    ESMA Updates Q&A on Securitization Regulation in November 2019

    ESMA updated questions and answers (Q&A) on the Securitization Regulation (Regulation 2017/2402).

    November 15, 2019 WebPage Regulatory News
    News

    HKMA Announces Finalization of Banking Liquidity Amendment Rules 2019

    HKMA issued a letter informing all authorized institutions that negative vetting of the Banking (Liquidity) (Amendment) Rules 2019 (BLAR) has now expired. Thus, the BLAR will now come into operation from January 01, 2020.

    November 15, 2019 WebPage Regulatory News
    News

    FSI Examines Use of Red Team Testing to Enhance Cyber Resilience

    The Financial Stability Institute (FSI) of BIS published a paper that examines the contribution of red team testing frameworks toward enhancing cyber resilience.

    November 15, 2019 WebPage Regulatory News
    News

    BCBS Consults on Revised Disclosures for Market Risk Framework

    BCBS launched a consultation on the revised disclosure requirements for the market risk framework for banks.

    November 14, 2019 WebPage Regulatory News
    News

    BCBS Consults on Disclosure Templates of Sovereign Exposures of Banks

    BCBS published a consultation on the voluntary disclosure templates related to sovereign exposures of banks.

    November 14, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 4167