Information on global systemically important banks published by the Basel Committee
In conjunction with today's publication by the Financial Stability Board of the updated list of global systemically important banks (G-SIBs), the Basel Committee on Banking Supervision has released further information.
This information includes:
-
a list of all the banks in the assessment sample;
-
the denominators used to calculate the scores for banks in the exercise;
-
the cutoff score that was used to identify the updated list of G-SIBs;
-
the thresholds used to allocate G-SIBs to buckets for the purposes of calculating the specific higher loss absorbency requirements for each institution; and
- links to the disclosures of all the banks in the assessment sample in 2015.
As detailed in the Committee's July 2013 publication, the methodology for assessing the systemic importance of banks consists of an indicator-based measurement approach. The indicators are calculated based on data for the previous fiscal year-end supplied by banks and validated by national authorities. After the automated calculation is produced, bank scores may in exceptional cases be adjusted by supervisory judgment. The final score, including the use of judgment, is then mapped to the corresponding bucket using the cut-off score and bucket thresholds. The assignment to a bucket determines the higher loss absorbency requirement for each G-SIB.
The agreed methodology also requires all the banks in the assessment sample to disclose, at a minimum, the 12 indicators used. However, given the potential for the use of supervisory judgment to adjust scores, the data disclosed by banks may not always be perfectly consistent with the final bucketing published today.
The higher loss absorbency requirements will be phased in from 1 January 2016, based on the end-2013 results published last year, with the full amount of the requirement in effect by 1 January 2019, consistent with the implementation schedule for the capital conservation buffer. This requirement published today represents the amount of capital designated G-SIBs must hold beginning 1 January 2017, subject to the phase-in arrangements.