- 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.
SBI, ICICI Bank, and HDFC Bank are identified as Domestic Systemically Important Banks (D-SIBs) in India. |
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.
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