The FSB and the Basel Committee on Banking Supervision (BCBS) have updated the list of global systemically important banks (G-SIBs), using end-2014 data and the updated assessment methodology published by the BCBS in July 2013. One bank has been added to and one bank has been removed from the list of G-SIBs that were identified in 2014, and therefore the overall number of G-SIBs remains 30. None are Australian.
The changes in the institutions included in the list and in their allocation across buckets reflect the combined effects of data quality improvements, changes in underlying activity, and the use of supervisory judgement.
In November 2011 the Financial Stability Board published an integrated set of policy measures to address the systemic and moral hazard risks associated with systemically important financial institutions (SIFIs). In that publication, the FSB identified as global SIFIs (G-SIFIs) an initial group of G-SIBs, using a methodology developed by the BCBS. The November 2011 report noted that the group of G-SIBs would be updated annually based on new data and published by the FSB each November.
Since the November 2012 update, the G-SIBs have been allocated to buckets corresponding to the higher loss absorbency requirements that they would be required to hold. The higher loss absorbency requirements begin to be phased in from 1 January 2016 for G-SIBs that were identified in November 2014 (with full implementation by 1 January 2019). The higher loss absorbency 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 the G-SIBs to the buckets in the updated list published today determines the higher loss absorbency requirement that will apply to each G-SIB from 1 January 2017.
G-SIBs in the updated list will be required to meet a new standard on Total Loss Absorbing Capacity (TLAC) alongside regulatory capital requirements set out in the Basel III framework.4 The new TLAC standard will be phased-in as from 1 January 2019.
G-SIBs are also subject to: Requirements for group-wide resolution planning and regular resolvability assessments. In addition, the resolvability of each G-SIB is also reviewed in a high-level FSB Resolvability Assessment Process (RAP) by senior policy-makers within the firms’ Crisis Management Groups. Higher supervisory expectations for risk management functions, risk data aggregation capabilities, risk governance and internal controls.
Since November 2013 the BCBS has published the denominators used to calculate banks’ scores, and the thresholds used to allocate the banks to buckets.6 In November 2014 the BCBS published a technical summary of the methodology, as well as the links to the GSIBs’ public disclosures. Starting this year, the BCBS also publishes and provides the links to the public disclosures of the full sample of banks assessed, as determined by the sample criteria set out in the BCBS G-SIB framework.
The list of G-SIBs will be next updated in November 2016.
HSBC
JP Morgan Chase
Barclays
BNP Paribas
Citigroup
Deutsche Bank
Bank of America
Credit Suisse
Goldman Sachs
Mitsubishi UFJ FG
Morgan Stanley
Agricultural Bank of China
Bank of China
Bank of New York Mellon
China Construction Bank
Groupe BPCE
Groupe Crédit Agricole
Industrial and Commercial Bank of China Limited
ING Bank
Mizuho FG
Nordea
Royal Bank of Scotland
Santander
Société Générale
Standard Chartered
State Street
Sumitomo Mitsui FG
UBS
Unicredit Group
Wells Fargo
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