The Financial Stability Board (FSB) today published the 2020 list of global systemically important banks (G-SIBs) using end-2019 data and an assessment methodology designed by the Basel Committee on Banking Supervision (BCBS).
The 30 banks on the list remain the same as the 2019 list.
FSB member authorities apply the following requirements to G-SIBs:
- Higher capital buffer: The G-SIBs are allocated to buckets corresponding to higher capital buffers that they are required to hold by national authorities in accordance with international standards. Compared with the 2019 list, three banks have moved to a lower bucket (JP Morgan has moved from bucket 4 to 3 and Goldman Sachs and Wells Fargo have moved from bucket 2 to 1) and one bank has moved to a higher bucket (China Construction Bank from bucket 1 to 2).
- Total Loss-Absorbing Capacity (TLAC): G-SIBs are required to meet the TLAC standard, alongside the regulatory capital requirements set out in the Basel III framework. The TLAC standard began being phased in from 1 January 2019 for G-SIBs identified in the 2015 list that continued to be designated as G-SIBs.
- Resolvability: These include group-wide resolution planning and regular resolvability assessments. The resolvability of each G-SIB is also reviewed in a high-level FSB Resolvability Assessment Process (RAP) by senior regulators within the firms’ Crisis Management Groups.
- Higher supervisory expectations: These include supervisory expectations for risk management functions, risk data aggregation capabilities, risk governance and internal controls.
BCBS today published updated denominators used to calculate banks’ scores and the values of the underlying twelve indicators for each bank in the assessment sample. The BCBS also published the cutoff score used to allocate the G-SIBs to buckets, as well as updated links to public disclosures of all banks in the sample.
A new list of G-SIBs will next be published in November 2021.