Basel Committee publishes new details on global systemically important banks
- Basel Committee releases further information on its 2020 assessment of G-SIBs to enhance understanding of G-SIB scores.
- The publication accompanies the FSB's updated list of G-SIBs.
- The Committee assesses the systemic importance of global banks using an indicator-based methodology based on data from the previous fiscal year-end.
The Basel Committee on Banking Supervision today published further information on its 2020 assessment of global systemically important banks (G-SIBs), based on end-2019 bank data, including details to enhance the understanding of G-SIB scores.
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 banks' scores;
- the 12 high-level indicators for each bank in the sample 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 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 a review of the G-SIB framework and published a revised assessment methodology, which is expected to be implemented in member jurisdictions by 2022.