FSB Updates G-SIB List

On 11 November 2013, the Financial Stability Board (FSB) published an updated list of global systemically important banks (G-SIBs) using end-2012 data.

The Basel Committee on Banking Supervision (BCBS) has also separately published the denominators used to calculate G-SIB scores and the Cut-off score and bucket thresholds that were used to allocate G-SIBs to particular buckets. The denominators are to be updated annually, while the cut-off score and bucket thresholds will remain fixed until November 2017, the date when the first three year review of the G-SIB assessment methodology is due to completed.

The G-SIB list was first published in November 2012 (see this blog post for more detail).  ‘Winners’ on the updated list appear to be Citigroup and Deutsche Bank, both of which have managed to reduce their bucket rating from bucket 4 to bucket 3, as well as Bank of New York Mellon, which has managed to reduce its buckets rating from bucket 2 to bucket 1.  The main ‘losers’ appear to be Credit Agricole, which has seen its bucket rating increase from bucket 1 to bucket 2, and the Industrial and Commercial Bank of China, which has been added to the list for the first time.  As a result, the overall number of G-SIBs has increased from 28 to 29.  These changes reflect the combined effects of data quality improvements, changes in the methodology and changes in underlying systemic importance.

Higher loss absorbency requirements for G-SIBs (in the form of the additional common equity expressed as a percentage of risk-weighted assets and specified in parentheses in the table below) will apply to G-SIBs identified in November 2014, using the bucket allocations at that date.  These requirements will be phased in from January 2016, with full implementation by January 2019.  Thereafter, the higher loss absorbency requirements for G-SIBs identified in the annual update each November will apply to them as from January fourteen months later.  G-SIBs will also be required to meet higher supervisory expectations for risk management functions, data aggregation capabilities, risk governance and internal controls.  Those G-SIBs identified in November 2011 or November 2012 must meet the higher expectations for data aggregation capabilities and risk reporting by January 2016, whilst those newly designated in November 2013 or in subsequent years must meet requirements within three years of the designation.

The G-SIB list in full comprises:

Bucket

G-SIB

5

(3.5%)

    Empty

4

(2.5%)

  • HSBC
  • JP Morgan Chase

3

(2.0%)

  • Barclays
  • BNP Paribas
  • Citigroup
  • Deutsche Bank

2

(1.5%)

  • Bank of America
  • Credit Suisse
  • Goldman Sachs
  • Group Credit Agricole
  • Mitsubishi UFJ FG
  • Morgan Stanley
  • Royal Bank of Scotland
  • UBS

1

(1.0%)

  • Bank of China
  • Bank of New York Mellon
  • BBVA
  • Group BPCE
  • Industrial and Commercial Bank of China Limited
  • ING Bank
  • Mizuho FG
  • Nordea
  • Santander
  • Societe Generale
  • Standard Chartered
  • State Street
  • Sumitomo Mitsui FG
  • Unicredit Group
  • Wells Fargo

 

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