Changes to the G-SIFI List
In November 2011, the Financial Stability Board (FSB) published its initial list of Global Systemically Important Banks (G-SIBs). On 1 November 2012, the list was updated, with BBVA and Standard Chartered being added to the list and Commerzbank, Dexia and Lloyds all being removed.
The significance of being classified as a G-SIB lies in the fact that, under Basel III, any bank identified as a G-SIB in November 2014 will be required to maintain additional loss absorbency. This requirement will be phased in between January 2016 and January 2019 and ranges between 1% and 2.5% of risk weighted assets depending on the significance of the individual firm. G-SIBs are also required to meet higher supervisory standards for risk management functions, data aggregation capabilities, risk governance and internal controls. Any firm newly designated as a G-SIB is required to implement certain resolution planning requirements within specified deadlines. Furthermore, even where a financial institution is no longer designated as a G-SIB it will continue to be subject to the requirement to prepare an RRP to the extent that it is assessed by its national regulator to be systemically significant or critical in the event of failure.
For the first time, the current list of G-SIBs has been allocated into provisional buckets corresponding to the required level of additional loss absorbency, as set out in more detail in Annex 1 below. The timetable for implementation of resolution planning requirements for newly designated G-SIFIs is detailed in Annex 2 below.
Annex 1
|
Bucket |
G-SIB in alphabetical order within each bucket |
|
5 (3.5%) |
(Empty) |
|
4 (2.5%) |
Citigroup
Deutsche Bank HSBC JP Morgan Chase |
|
3 (2.0%) |
Barclays BNP Paribas |
|
2 (1.5%) |
Bank of America Bank of New York Mellon Credit Suisse Goldman Sachs Mitsubishi UFJ FG Morgan Stanley Royal Bank of Scotland UBS |
| 1
(1.0%) |
Bank of China BBVA Group BPCE Group Credit Agricole ING Bank Mizuho FG Nordea Santander Societe Generale Standard Chartered State Street Sumitomo Mitsui FG Unicredit Group Wells Fargo |
Annex 2
| G-SIFI Requirement | Deadline for completion following date of G-SIFI designation |
| Establishment of Crisis Management Group (CMG) |
6 months
|
| Development of recovery plan |
12 months
|
| Development of resolution strategy and review within CMG |
12 months
|
| Agreement of institution specific cross-border cooperation agreement |
18 months
|
| Development of operational resolution plan |
18 months
|
| Conduct of resolvability assessment by CMG and resolvability assessment process |
24 months
|