G-SIB assessment methodology review process

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BCBS  | 
Consultative
 | 
20 July 2021
 | 
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The Basel Committee on Banking Supervision has issued for consultation a proposal for a technical amendment to the Basel Framework. The amendment relates to the process used by the Committee to review the G-SIB assessment methodology.

The Committee plans to replace the existing three year review cycle with a process of ongoing monitoring and review. This will include monitoring: (i) recent developments in techniques or new indicators that can be used for the assessment of systemic risk; (ii) emerging evidence on the effectiveness of the G-SIB regime; and (iii) structural changes that could impact the effectiveness of the regime. Only if this monitoring work reveals evidence of material unintended consequences or material deficiencies with respect to the framework's objectives will the Committee consider changes to the regime.

As the current Basel Framework references the existing three year review cycle, a technical amendment is needed to reflect the planned new process. Comments on the proposed amendment should be submitted here by 3 September 2021. All submissions will be published on the BIS website unless a respondent specifically requests confidential treatment.