The BCBS has concluded the first review of the G-SIB framework. Building on member jurisdictions' experience and the feedback received during last year's public consultation, the BCBS has reconfirmed the fundamental structure of the G-SIB framework. There is general recognition that the framework is meeting its primary objective of requiring G-SIBs to hold higher capital buffers and providing incentives for such firms to reduce their systemic importance.
The decision to maintain the core elements of the G-SIB framework also contributes to the stability of the regulatory environment following the end-2017 finalisation of the Basel III post-crisis reforms.
Based on the review, a number of enhancements to the G-SIB framework have been agreed, including the extension of the scope of consolidation to insurance subsidiaries and the introduction of a trading volume indicator in the substitutability category.
The revised G-SIB assessment methodology is expected to be implemented in member jurisdictions by 2021. The BCBS will complete the next review of the G-SIB framework by 2021.
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