Featured Product

    FSB Publishes List of Global Systemically Important Banks for 2019

    November 22, 2019

    FSB published the 2019 list of global systemically important banks (G-SIBs), using the end-2018 data and an assessment methodology designed by BCBS. One bank (Toronto Dominion) has been added to the list of G-SIBs that were identified in 2018. Therefore, the overall number of G-SIBs has increased from 29 to 30. A new list of G-SIBs will next be published in November 2020. In addition to the G-SIB list published by FSB, BCBS published the updated denominators used to calculate scores of banks and the values of the twelve underlying indicators for each bank in the assessment sample. BCBS also published the thresholds used to allocate the G-SIBs to buckets, along with the updated links to public disclosures of all banks in the sample.

    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

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

    Featured Experts
    Related Articles
    News

    OSFI Consults on Revisions to BCAR and Leverage Requirements Returns

    OSFI proposed revisions to the Basel Capital Adequacy Reporting (BCAR) and leverage requirements returns for the 2023 reporting, with the comment period ending on July 09, 2021.

    May 04, 2021 WebPage Regulatory News
    News

    EBA Seeks Views on Revisions to Nonperforming Loan Data Templates

    EBA published a discussion paper on review of the standardized nonperforming loans (NPL) transaction data templates, along with the proposed revised NPL data templates.

    May 04, 2021 WebPage Regulatory News
    News

    Bundesbank Updates Requirements Documentation for AnaCredit Reporting

    Bundesbank updated AnaCredit reporting requirements for banks, with reference to the Notice 8001/2020.

    May 03, 2021 WebPage Regulatory News
    News

    CBUAE Issues Regulation for Low-Risk Specialized Banks

    CBUAE has issued a regulation that introduces the licensing and supervision framework for low-risk, specialized banks.

    May 01, 2021 WebPage Regulatory News
    News

    APRA Proposes Guidance to Support Prudential Standard on Remuneration

    APRA is consulting on CPG 511—the draft Prudential Practice Guide on remuneration for banks, insurers, and superannuation licensees—with the comment period ending on July 23, 2021.

    April 30, 2021 WebPage Regulatory News
    News

    MAS Announces Grant Scheme to Spur Adoption of Regtech Solutions

    MAS announced a new RegTech grant scheme and an enhancement of the Digital Acceleration Grant (DAG) scheme to accelerate technology adoption in the financial sector.

    April 30, 2021 WebPage Regulatory News
    News

    PRA Review Finds Most Banks Compliant with Regulatory Reporting Rules

    PRA published a letter that sets out findings from the 2020 Internal Audit Review of the Collections function of a sample of non-systemic banks and building societies.

    April 30, 2021 WebPage Regulatory News
    News

    EIOPA Launches Consultation on Interbank Offered Rate Transitions

    EIOPA launched a consultation on the Interbank Offered Rate (IBOR) transitions, in context of the EU Benchmarks Regulation.

    April 30, 2021 WebPage Regulatory News
    News

    IFRS Issues Proposals Related to New Sustainability Standards Board

    The Trustees of the IFRS Foundation proposed amendments to the Constitution of the IFRS Foundation to accommodate the potential formation of the new International Sustainability Standards Board within the governance structure of the organization.

    April 30, 2021 WebPage Regulatory News
    News

    BCB Amends Rules on Open Banking and Proposes ESG Disclosure Rules

    BCB amended the resolution that establishes technical requirements and operational procedures for the implementation of open banking in Brazil, with the amended resolution entering into force on its publication date.

    April 30, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6925