BCBS releases G-SIB framework review results
06 July 2018 Basel
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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.
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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