BCBS published a working paper that analyzes the initial experience with the global systemically important bank (G-SIB) framework. The paper investigates whether G-SIBs and non-G-SIBs have behaved differently since the implementation of the G-SIB framework and if observed differences in behavior are in accordance with the aims of the framework. It also examines the regional differences in the behavior of G-SIBs and non-G-SIBs.
The analysis reveals that G-SIBs and non-G-SIBs behave differently; however, both groups are heterogeneous, so that the indicator outcomes are often highly influenced by a few banks. Nevertheless, most G-SIBs have reduced their G-SIB scores during the period assessed, changing their balance sheets in ways that are consistent with the aims of the G-SIB framework. In contrast, non-G-SIBs have increased their relative G-SIB scores during the same period. Finally, the regional analysis indicates that trends in banks' G-SIB indicators, and the indicators that contribute most to the final G-SIB score, are heterogeneous across countries and regions. While G-SIBs from the euro area, Great Britain, and the United States have reduced their systemic importance for most indicators, Chinese and Japanese G-SIBs showed relatively positive growth rates for all indicators—and particularly high ones for indicators in the substitutability category.""
For this analysis, the sample of G-SIBs and non-G-SIBs were divided into six and 10 countries or regions. G-SIBs were grouped into United States, Euro area, non-euro area, Great Britain, China, and Japan. The non-G-SIBs were grouped into euro area (Belgium, France, Germany, Italy, the Netherlands, and Spain); non-euro area, United States, Canada, China, Australia, Japan, Korea, and Others (non-G-SIBs of Brazil, India, Russia, and Singapore).
Keywords: International, Banking, G-SIB, Systemic Risk, G-SIB Framework, Macro-prudential Assessment, 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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