- The Basel Committee has published amendments to address window-dressing behaviour in the framework for global systemically important banks (G-SIBs).
- Banks will be required to report and disclose indicators used to calculate G-SIB scores based on average values over the reporting year, rather than year-end values, by January 2030.
- The Committee consults on whether to incorporate its previously agreed treatment of cross-border exposures within the European Banking Union (EBU) into the methodology.
The Basel Committee on Banking Supervision today published final amendments to address window dressing in the G-SIB framework and a consultation on the G-SIB methodology review.
"Window dressing" seeks to temporarily reduce banks' perceived systemic footprint around the reference dates used for the reporting and public disclosure of G-SIB scores. As noted previously by the Committee, window-dressing by banks is unacceptable. Such behaviour undermines the intended policy objectives of the Committee's standards and risks disrupting the operations of financial markets.
The amendments aim at constraining banks' ability to lower their G-SIB scores through window-dressing. This will be achieved by requiring banks participating in the G-SIB assessment exercise to report and disclose all stock G-SIB indicators based on an average of values over the reporting year, rather than year-end values. To provide sufficient time for banks to develop a robust and comprehensive reporting process, the revised standard will be implemented by 1 January 2030.
In addition, the Committee has agreed to increase the G-SIB reporting and disclosure threshold from EUR 200 billion to EUR 350 billion in leverage ratio exposure measure, to be implemented from 2027.
Separately, as part of the Committee's periodic review of the G-SIB assessment methodology, the Committee is consulting on whether to incorporate the treatment of cross-border exposures within the EBU in the G-SIB framework.
The Committee welcomes comments on all aspects of the consultation from stakeholders. Comments should be submitted here by 14 January 2027.