The Financial Stability Board (FSB), in consultation with Basel Committee on Banking Supervision (BCBS) and national authorities, has identified the 2016 list of global systemically important banks (G-SIBs), using end-2015 data and the updated assessment methodology published by the BCBS in July 2013.

The 30 institutions identified as G-SIBs in 2016 remain the same as those on the 2015 list (see Annex).

The changes in the allocation across buckets of the institutions on the list reflect the combined effects of data quality improvements, changes in underlying activity, and the use of supervisory judgement.

In November 2011 the FSB published an integrated set of policy measures to address the systemic and moral hazard risks associated with systemically important financial institutions (SIFIs).

In that publication, the FSB identified as global systemically important financial institutions (G-SIFIs) an initial group of G-SIBs, using a methodology developed by the BCBS.

The November 2011 report noted that the group of G-SIBs would be updated annually based on new data and published by the FSB each November.

G-SIBs are subject to:

Higher capital buffer requirements: Since the November 2012 update, the G-SIBs have been allocated to buckets corresponding to the higher capital buffers that they would be required to hold by national authorities in accordance with international standards. Higher capital buffer requirements began to be phased in from 1 January 2016 for G-SIBs that were identified in November 2014 (with full implementation by 1 January 2019).

The capital buffer requirements for the G-SIBs identified in the annual update each November will apply to them as from January fourteen months later. The assignment of G-SIBs to the buckets in the list published today determines the higher capital buffer requirements that will apply to each G-SIB from 1 January 2018.

Total Loss-Absorbing Capacity (TLAC) requirements: G-SIBs will be required to meet the TLAC standard, alongside the regulatory capital requirements set out in the Basel III framework.

The TLAC standard will be phased-in from 1 January 2019 for G-SIBs designated in the 2015 list (provided that they will continue to be designated as G-SIBs thereafter).

Resolvability requirements: 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.

Since November 2013 the BCBS has published the denominators used to calculate banks’ scores, and the thresholds used to allocate the banks to buckets.

In November 2014 the BCBS published a technical summary of the methodology, as well as the links to the G-SIBs’ public disclosures.

Since last year the BCBS has also published and provided the links to the public disclosures of the full sample of banks assessed, as determined by the sample criteria set out in the BCBS G-SIB framework.

A new list of G-SIBs will next be published in November 2017.

Source: FSB statement