On November 21, 2017, the Financial Stability Board published the 2017 list of Global Systemically Important Banks. The list was compiled using end-2016 data and the 2013 assessment methodology designed by the Basel Committee on Banking Supervision. The Basel Committee has proposed a revised assessment framework for G-SIBs but has not yet published the finalized version. The 2013 framework identifies G-SIBs by assessing their contribution to systemic risk and imposes higher capital requirements on G-SIBs to reduce the likelihood of their failure. Identified G-SIBs are placed into buckets based on their score of systemic importance. G-SIBs are also subject to Total Loss Absorbing Capacity requirements, higher resolvability requirements and higher supervisory expectations on risk management, risk data aggregation capabilities, risk governance and internal controls.
The G-SIB list comprises 30 banks. The 2017 list is largely the same as the 2016 list, except that the Royal Bank of Canada has been added, and Groupe BPCE has been removed.
The list of G-SIBs is available at: http://www.fsb.org/wp-content/uploads/P211117-1.pdf and the Basel Committee 2013 assessment methodology is available at: https://www.bis.org/press/p171121.htm .
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
