On 23 November 2021, the Financial Stability Board (FSB) published the 2021 list of global systematically important banks (G-SIBs) using end-2020 data and an assessment methodology designed by the Basel Committee on Banking Supervision (Basel Committee).
FSB member authorities apply the following requirements to G-SIBs:
- Higher capital buffer. The G-SIBs have been allocated to buckets corresponding to higher capital buffers that they are required to hold by national authorities in accordance with international standards. The capital buffer requirements for the G-SIBs identified in the annual update each November will apply to them as from January fourteen months later. The assignment of G-SIBs to the buckets, in the published list, therefore determines the higher capital buffer requirements that will apply to each G-SIB from 1 January 2023.
- Total-Loss-Absorbing Capacity (TLAC). G-SIBs are required to meet the TLAC standard, alongside the regulatory capital requirements set out in the Basel III framework. The TLAC standard has begun being phased-in from 1 January 2019 for G-SIBs identified in the 2015 list that continued to be designated as G-SIBs.
- These include group-wide resolution planning and regular resolvability assessments.
- Higher supervisory expectations. These include supervisory expectations for risk management functions, risk data aggregation capabilities, risk governance and internal controls.
The Basel Committee has published further detail on the allocation of G-SIB status covering:
- 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.
- The cut-off 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.
- Links to the public disclosures of all banks in the full sample of banks assessed.
A new list of G-SIBs will be published in November 2022.