This end-of-2023 data helps regulatory bodies pinpoint a group of banks designated as global systemically important institutions (G-SIIs), following the final decision by the Basel Committee on Banking Supervision (BCBS) and the Financial Stability Board (FSB).
A consistent sample of 27 institutions reveals that the total exposures of these banks rose by 1.3% by the end of 2023. Notably, the Securities Outstanding and Level 3 Assets indicators surged by 14.9% and 12.6% respectively, reaching their highest combined value since 2013. Additionally, Assets under custody saw a significant uptick of 11.2%. The payments activity indicator was the sole metric to display a decline (-3.7%) from 2022 to the close of 2023.
The identification of a Global Systemically Important Institution (G-SII) and the subsequent imposition of higher capital buffer requirements are managed by national competent authorities. This process relies on global denominators and G-SIB exercise results disclosed by the BCBS and the FSB annually in November . Once the bank-specific results and buffer rate allocation are published by competent authorities, the higher capital buffer requirements take effect approximately a year later, giving institutions time to adapt.
The EBA Guidelines on disclosure of G-SIIs, as amended by EBA/GL/2022/11, set requirements for disclosing values used in identifying and scoring G-SIIs, following global standards. The EBA backs disclosing cross-jurisdictional indicators and data for EU banks amid the Basel Committee's G-SIB assessment methodology review.
The EU aims to improve transparency in the financial market by surpassing the BCBS disclosure standards. The depth and coverage of the disclosed information go beyond the minimum requirements, including templates from institutions not part of BCBS's G-SIB exercise. Regulatory Technical Standards and Guidelines align with international standards such as BCBS and FSB for G-SII identification and disclosure.
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