List of G-SIBS released by FSB

• The Financial Stability Board (FSB) published the 2023 list of global systemically important banks (G-SIBs) using end-2022 data and applying the assessment methodology designed by the Basel Committee on Banking Supervision (BCBS).
• One bank (Bank of Communications (BoCom)) has been added to the list of G-SIBs that were identified in 2022, and two banks (Credit Suisse and UniCredit) have been removed.
• The overall number of G-SIBs therefore decreases from 30 to 29.
  • None of the Indian Banks is on the list.

ABOUT G-SIBS

• A G-SIB is bank whose systemic risk profile is deemed to be of such importance that the bank’s failure would trigger a wider financial crisis and threaten the global economy.
• FSB member authorities apply the following requirements to G-SIBs–
  • Higher capital buffer: The G-SIBs are allocated to buckets corresponding to higher capital buffers that they are required to hold by national authorities in accordance with international standards.
  • Total Loss-Absorbing Capacity (TLAC): G-SIBs are required to meet the TLAC standard, alongside the regulatory capital requirements set out in the Basel III framework.
  • Resolvability: These requirements include group-wide resolution planning and regular resolvability assessments.
  • Higher supervisory expectations: These include supervisory expectations for risk management functions, risk data aggregation capabilities, risk governance and internal controls.

ABOUT FSB

• It was established in 2009 after the G20 Summit in London as the successor to the Financial Stability Forum.
• The FSB Secretariat is located in Basel, Switzerland, and hosted by the Bank for International Settlements.
• The FSB coordinates at the international level the work of national financial authorities and international standard-setting bodies and develops and promotes the implementation of effective regulatory, supervisory, and other financial sector policies in the interest of financial stability.
• It brings together national authorities responsible for financial stability in 24 countries and jurisdictions, international financial institutions, sector-specific international groupings of regulators and supervisors, and committees of central bank experts.

The FSB also conducts outreach with approximately 70 other jurisdictions through its six Regional Consultative Groups.