BCBS consults on amendment to G-SIB assessment methodology review process

2021/07/20

The Basel Committee on Banking Supervision (BCBS) launched a consultation (to run until 3 September 2021) on a proposed technical amendment to the process for reviewing the assessment methodology for global systemically important banks (G-SIBs). The BCBS currently assesses the systemic importance of global banks annually using an indicator-based methodology, which should be reviewed every three years. It plans to replace the fixed review cycle with a process of ongoing monitoring and review, in which changes to the regime will only be considered if evidence of material deficiencies or problems is revealed. The monitoring encompasses

• developments in techniques or new indicators of systemic risk;
• the effectiveness of the G-SIB regime; and
• structural changes that could impact the effectiveness of the regime.