The Basel Committee issues final rules for global systemically important banks

4 November 2011

Press release

The Basel Committee on Banking Supervision issued today its rules for global systemically important banks (G-SIBs).

Today's publication, Global systemically important banks: Assessment methodology and the additional loss absorbency requirement, sets out the Basel Committee's framework to identify G-SIBs, the magnitude of additional loss absorbency that G-SIBs should have, and the arrangements by which the requirement will be phased in.

The Committee also issued today an evaluation and summary of public comments received on its July 2011 G-SIBs consultative paper. After a careful review of the comments, the Committee has reached agreement on the G-SIBs framework including some changes to certain indicators that will improve the methodology for identifying G-SIBs. A few of these changes will be subject to additional testing by March 2012 using updated bank data.

Mr Stefan Ingves, Chairman of the Basel Committee on Banking Supervision and Governor of Sveriges Riksbank, Sweden's central bank, noted that "the measures adopted by the Committee to increase G-SIBs' ability to absorb losses will help to reduce their probability of failure. This is critical and necessary and will complement the measures also announced today by the Financial Stability Board. Complete and globally consistent implementation of these measures will be essential for a safer and sounder banking system and will contribute to broader financial system stability."

About the Basel Committee

The Basel Committee on Banking Supervision provides a forum for regular cooperation on banking supervisory matters. It seeks to promote and strengthen supervisory and risk management practices globally. The Committee comprises representatives from Argentina, Australia, Belgium, Brazil, Canada, China, France, Germany, Hong Kong SAR, India, Indonesia, Italy, Japan, Korea, Luxembourg, Mexico, the Netherlands, Russia, Saudi Arabia, Singapore, South Africa, Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States. Observers on the Basel Committee are: the European Banking Authority, the European Central Bank, the European Commission, the Financial Stability Institute and the International Monetary Fund.