Basel Committee consults on an amendment to the process for reviewing the G-SIB methodology

  • Basel Committee consults on a technical amendment to the Basel Framework to reflect a new process for reviewing the G-SIB assessment methodology.
  • The Committee plans to replace the existing three-year review cycle with a process of ongoing monitoring and review.
  • The Committee invites comments on the amendment by 3 September.

The Basel Committee on Banking Supervision has today issued for consultation a proposal for a technical amendment to the Basel Framework. The amendment describes a new process that will be used by the Committee to review the assessment methodology for global systemically important banks (G-SIBs).

The Committee assesses the systemic importance of global banks annually using an indicator-based methodology. It plans to replace the existing three-year review cycle of the assessment methodology with a process of ongoing monitoring and review.

The proposed process will include monitoring:

(i) recent developments in techniques or new indicators that can be used for the assessment of systemic risk;

(ii) emerging evidence on the effectiveness of the G-SIB regime; and

(iii) structural changes that could impact the effectiveness of the regime. Only if this monitoring work reveals evidence of material unintended consequences or material deficiencies with respect to the framework’s objectives will the Committee consider changes to the regime.

As the current Basel Framework references the existing three year review cycle, a technical amendment is needed to reflect the planned new process. Comments on the proposed amendment should be submitted here by 3 September 2021. All submissions will be published on the BIS website unless a respondent specifically requests confidential treatment.

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