FSB Publishes List of Global Systemically Important Banks for 2019

FSB member authorities apply the following requirements to G-SIBs:

• Higher capital buffer: The G-SIBs are allocated to buckets corresponding to higher capital buffers that national authorities require banks to hold in accordance with international standards. Compared with the 2018 list of G-SIBs, one bank—that is, Deutsche Bank—has moved from bucket 3 to bucket 2.
• Total Loss-Absorbing Capacity (TLAC): G-SIBs are required to meet the TLAC standard, alongside the regulatory capital requirements set out in the Basel III framework. The TLAC standard began being phased in from January 01, 2019 for G-SIBs identified in the 2015 list (provided that they continued to be designated as G-SIBs thereafter).
• Resolvability: The resolvability requirements for G-SIBs 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 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.

The assessment methodology of BCBS assesses the systemic importance of global banks using indicators that are calculated based on the data for the previous fiscal year-end and this data is supplied by banks and validated by national authorities. The final scores are mapped to corresponding buckets, which determine the higher loss absorbency requirement for each G-SIB. In July 2018, BCBS concluded its first review of the G-SIB framework and published a revised assessment methodology, which is expected to be implemented in member jurisdictions by 2021. BCBS will complete the next review of the G-SIB framework by 2021.

Related Links

• FSB Press Release
• List of G-SIBs (PDF)
• BCBS Press Release
• G-SIBs Assessment Methodology

Keywords: International, Banking, G-SIB, G-SIB Assessment, Systemic Risk, 2019 G-SIB List, TLAC, Basel III, Capital Buffer, BCBS, FSB