The Basel Committee on Banking Supervision (BCBS) has “reconfirmed” the fundamental structure of the global systemically important bank (G-SIB) framework.
This is the BCBS’s first review of the framework since it was published in 2011.
A number of enhancements to the framework have been agreed. These include: amending the definition of cross-jurisdictional indicators consistent with the definition of Bank for International Settlements (BIS) consolidated statistics; introducing a trading volume indicator and modifying the weights in the substitutability category; and extending the scope of consolidation to insurance subsidiaries.
There will also be a revision of disclosure requirements; providing further guidance on bucket migration, and associated higher loss absorbency surcharge when a G-SIB moves to a lower bucket; and adopting a transitional schedule for the implementation of these enhancements to the G-SIB framework.
The revised assessment methodology is expected to be implemented in member jurisdictions by 2021. BCBS will complete the next review of the framework by 2021.
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