Basel Committee publishes more details on global systemically important banks
The Basel Committee on Banking Supervision today published further information related to its 2019 assessment of global systemically important banks (G-SIBs), including additional details underlying the scoring methodology.
The publication accompanies the Financial Stability Board's release of the updated list of G-SIBs and includes:
- the denominators of each of the 12 high-level indicators used to calculate the banks' scores;
- for each bank in the sample, the 12 high-level indicators used to calculate these denominators; and
- the cutoff score used to identify the G-SIBs in the updated list and the thresholds used to allocate G-SIBs to buckets for the purpose of calculating the specific higher loss absorbency requirements.
The Committee's methodology assesses the systemic importance of global banks using indicators that are calculated based on the data for the previous fiscal year-end 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, the Committee 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.
The Committee will complete the next review of the G-SIB framework by 2021.