FSA Publishes Revised G-SIB Framework and Consultation
Overview
The Basel Committee published a final document changing many G-SIB selection indicators to annual averages. It also launched a public consultation seeking views on incorporating the treatment of cross-border exposures within the European Banking Union into the framework, with comments due by January 14, 2027.
Key points
- The final document changes many G-SIB selection indicators to annual averages.
- Separately, a consultation document on reviewing the G-SIB assessment methodology was published.
- The deadline for submitting comments is January 14, 2027.
Overview
On October 16, 2026, the Basel Committee on Banking Supervision (Basel Committee) published the final document “Global systemically important banks (G-SIBs) — Revised assessment framework to address window-dressing behavior.” It partially revises the provisions on the G-SIB assessment methodology in the “Consolidated Basel Framework,” published in December 2019, and was finalized following the public consultation launched in March 2024.
The consultation document “Review of the G-SIB assessment methodology” seeks views on whether to incorporate into the G-SIB framework the treatment of cross-border exposures within the European Banking Union (EBU), agreed in 2022.
Impact
The change to using averages over the year is intended to curb window-dressing behavior, in which temporary adjustments to positions around the reference date are made to try to lower the assessment.
Details
The revision covers many of the indicators used to select G-SIBs, changing the values used in the assessment to averages over the year. Window dressing refers to regulatory arbitrage in which positions or other items are temporarily adjusted around the reporting or disclosure reference date for selection data to try to lower the assessment of systemic importance.
Comments on the consultation document should be submitted in English to the Basel Committee by Thursday, January 14, 2027.