BCBS Issues Reporting Instructions and Template for G-SIB Assessment
BCBS published reporting instructions, reporting template, and the year-end and annual average exchange rates as part of the 2020 assessment for global systemically important banks (G-SIBs). The reporting instructions cover general information such as the scope of the G-SIB assessment exercise, the process to be followed, and the overall structure of the quantitative questionnaire. The reporting instructions also detail the data collected in the template, including the specific data definitions and the interpretation of built-in data checks.
While participation in portions of this exercise is voluntary in certain jurisdictions, BCBS expects a high level of participation to ensure robust results. The relevant supervisory authorities will be required to estimate values based on publicly available information if banks do not provide data. In accordance with BCBS standards, all banks with a leverage ratio exposure measure exceeding EUR 200 billion (using the exchange rate applicable at the financial year-end) are required to publicly disclose information containing at least the 12 indicators described in Appendix 5 (of the instructions document) within four months of the financial year-end. Banks below this threshold that have been added to the sample as a result of being classified as a G-SIB in the previous year are also subject to the disclosure requirement.
The BCBS assessment methodology for G-SIBs requires a sample of banks to report a set of indicators to national supervisory authorities. These indicators are then aggregated and used to calculate the scores of banks in the sample. Banks above a cut-off score are identified as G-SIBs and are allocated to buckets, which are then used to determine their higher loss-absorbency requirement. BCBS had published a revised assessment methodology and the higher loss-absorbency requirement for G-SIBs in July 2018. This revised assessment methodology was scheduled to apply from 2021, based on the end-2020 data. However, in April 2020, when BCBS had set out additional measures to alleviate the impact of COVID-19 pandemic, BCBS decided to postpone the implementation of the revised G-SIB framework by one year, from 2021 to 2022.
Related Links
Keywords: International, Banking, G-SIB, Systemic Risk, G-SIB Assessment, Reporting, Regulatory Capital, Basel, BCBS
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Previous Article
CBK Issues Statement on Distribution of Cash Dividends by BanksNext Article
BIS Innovation Hub Sets Out Work Program for 2021Related Articles
PRA Finalizes Supervisory Approach for Non-Systemic Banks in UK
PRA published the policy statement PS8/21, which contains the final supervisory statement SS3/21 on the PRA approach to supervision of the new and growing non-systemic banks in UK.
EBA Finalizes Standards on Methods of Prudential Consolidation
EBA published a report that sets out the final draft regulatory technical standards specifying the conditions according to which consolidation shall be carried out in line with Article 18 of the Capital Requirements Regulation (CRR).
EBA Updates List of Other Systemically Important Institutions in EU
EBA updated the list of other systemically important institutions (O-SIIs) in EU.
BCBS Report Concludes Basel Risk Categories Can Capture Climate Risks
BCBS published two reports that discuss transmission channels of climate-related risks to the banking system and the measurement methodologies of climate-related financial risks.
UK Authorities Welcome FSB Review of their Remuneration Regime
UK Authorities (FCA and PRA) welcomed the findings of FSB peer review on the implementation of financial sector remuneration reforms in the UK.
PRA and FCA Letter on Addressing Risks from Use of Deposit Aggregators
PRA and FCA jointly issued a letter that highlights risks associated with the increasing volumes of deposits that are placed with banks and building societies via deposit aggregators and how to mitigate these risks.
MFSA to Amend Banking Act and Rules in Coming Months to Transpose CRD5
MFSA announced that amendments to the Banking Act, Subsidiary Legislation, and Banking Rules will be issued in the coming months, to transpose the Capital Requirements Directive (CRD5) into the national regulatory framework.
EC Delegated Regulation on Specialized Lending Exposures Under CRR
EC finalized the Delegated Regulation 2021/598 that supplements the Capital Requirements Regulation (CRR or 575/2013) and lays out the regulatory technical standards for assigning risk-weights to specialized lending exposures.
OSFI Proposes to Enhance Assurance Expectations for Basel Returns
OSFI launched a consultation to explore ways to enhance the OSFI assurance over capital, leverage, and liquidity returns for banks and insurers, given the increasing complexity arising from the evolving regulatory reporting framework due to IFRS 17 (Insurance Contracts) standard and Basel III reforms.
ECB Issues Results of Benchmarking Analysis of Recovery Plans of Banks
ECB published results of the benchmarking analysis of the recovery plan cycle for 2019.
