04 November 2011

FSB announced policy measures to address SIFIs and named initial group of global SIFIs

At the Cannes Summit, the G20 Leaders endorsed the implementation of an integrated set of policy measures to address the risks to the global financial system from systemically important financial institutions (SIFIs), and the timeline for implementation of these measures.

Specific measures focus on global SIFIs (G-SIFIs) to reflect the greater risks that these institutions pose to the global financial system.

The policy measures announced today comprise:

• a new international standard as a point of reference for reforms of national resolution regimes, to strengthen authorities’ powers to resolve failing financial firms in an orderly manner and without exposing the taxpayer to the risk of loss;
• requirements for resolvability assessments, recovery and resolution plans and institution-specific cross-border cooperation agreements for G-SIFIs;
• requirements for additional loss absorption capacity above the Basel III minimum for global systemically important banks; and
• more intensive and effective supervision through stronger supervisory mandates, and higher supervisory expectations for risk management functions, risk data aggregation capabilities, risk governance and internal controls.

The policy measures are set out in the following documents published under separate press releases today:

• Key Attributes of Effective Resolution Regimes for Financial Institutions;
• Global Systemically Important Banks: Assessment Methodology and the Additional Loss
• Absorbency Requirement; and Intensity and Effectiveness of SIFI Supervision.

The FSB identifies the initial group of 29 G-SIFIs for which the resolution-related requirements will need to be met by end-2012. Going forward, the list of G-SIFIs will be updated each year in November. The additional loss absorbency requirement will apply from 2016, initially to those banks identified in November 2014 as G-SIFIs. These banks will also have to meet the higher supervisory expectations for data aggregation capabilities by January 2016.

The FSB will conduct an iterative process of peer reviews to ensure that the new standard for resolution regimes is implemented fully and consistently across countries and institutions. A Peer Review Council will evaluate implementation of the G-SIFI requirements.

G-SIFIs for which the resolution-related requirements will need to be met by end-2012:

• Bank of America
• Bank of China
• Bank of New York Mellon
• Banque Populaire CdE
• Barclays
• BNP Paribas
• Citigroup
• Commerzbank
• Credit Suisse
• Deutsche Bank
• Dexia
• Goldman Sachs
• Group Crédit Agricole
• HSBC
• ING Bank
• JP Morgan Chase
• Lloyds Banking Group
• Mitsubishi UFJ FG
• Mizuho FG
• Morgan Stanley
• Nordea
• Royal Bank of Scotland
• Santander
• Société Générale
• State Street
• Sumitomo Mitsui FG
• UBS
• Unicredit Group
• Wells Fargo

Press Release

© Financial Stability Board