G-SIB denominators and scores dynamics: a ten-year assessment

This paper examines the global systemically important bank (G-SIB) framework ten years after its introduction, covering three complementary perspectives: the evolution of the G-SIB denominators, the relative evolution of scores of G-SIBs and non-G-SIBs, and the adjustments in the balance sheets of G-SIBs.

Since 2013 most G-SIB indicators have grown significantly in nominal terms. This increase is in line with benchmarks for a broader sample of banks than those taking part in the G-SIB assessment. The increase varies across regions, with lower growth rates in Europe and the Americas and higher rates in the rest of the world. The annual growth rates of most denominators spiked at end-2021, primarily due to one-off developments, rather than a structural increase in growth rates.

Since 2013, the average score for G-SIBs has declined, mainly driven by a decrease in complexity and interconnectedness, while the average score of non-G-SIBs has increased. This suggests that the role of G-SIBs in certain activities has been shrinking over time. G-SIBs have increased, however, their relative share in certain other activities (eg cross-border business and payments). Overall, the scores of G-SIBs and non-G-SIBs have converged slightly over time.

Finally, the paper presents the results of an econometric analysis that uses a unique dataset containing all the G-SIB items reported by banks participating in the G-SIB assessment exercise since 2010. The analysis suggests that G-SIBs have adjusted their balance sheets in a way that is broadly consistent with the incentives of the G-SIB framework.