The Financial Stability Board (FSB) has released its 2022 list of global systemically-important banks (G-SIBs), with the same group of 30 banks appearing in this G-SIB category as 12 months previously.
This classification is based on bank data for the end of 2021 and, for the first time, applies a revised assessment methodology published by the Basel Committee on Banking Supervision (BCBS) in 2018.
G-SIBs are required by FSB member authorities to meet specific requirements relating to capital buffers, total loss-absorbing capacity, resolution planning and supervisory expectations placed on banks holding G-SIB status.
These G-SIB banks are required by national supervisory authorities to hold higher capital buffers and are grouped into buckets depending on how much capital they must hold. Since 2021, Bank of America has moved to a higher bucket (bucket 2 to bucket 3). In contrast, China Construction Bank (bucket 2 to bucket 1) and BNP Paribas (bucket 3 to bucket 2) have both moved to lower buckets.
Typically, G-SIBs will be subject to higher supervisory expectations relating to risk data aggregation capability, risk management functions, risk governance and internal controls.
Today, BCBS has released an updated set of denominators used to calculate G-SIB scores and updated thresholds used to allocate banks to capital ‘buckets’ (see above).
Since the 2021 assessment, the BCBS has been reviewing the impact of the European Banking Union for G-SIB assessment methodology, including treatment of cross-border exposures within the EBU, and will be monitoring the need to accommodate future developments in the EBU into its G-SIB framework.
An updated list of G-SIBs will next be announced in November 2023.
