3 US Banks Assessed as More Systemically Important Financial Insitutions

From the FRANHENDY Blog


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.

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).2 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; Total Loss-bsorbing;Capacity (TLAC) requirements; Resolvability requirements; and Higher supervisory expectations.

Three US banks – Citigroup, Bank of America and Wells Fargo – became more systemically…

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