BCBS makes amendments to G-SIB framework to address window dressing and consults on G-SIB methodology review

The Basel Committee on Banking Supervision (BCBS) has published final amendments to the global systemically important bank (G-SIB) framework aimed at addressing "window-dressing" behaviour, as well as a consultation on the G-SIB assessment methodology. "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. The BCBS views window dressing by banks as unacceptable.

The final amendments will require banks participating in the G-SIB assessment exercise to report and disclose all stock G-SIB indicators using average values over the reporting year rather than year-end values. The revised standard will be implemented by 1 January 2030 to give banks time to prepare. The BCBS has also agreed to increase the G-SIB reporting and disclosure threshold from EUR200 billion to EUR350 billion in leverage ratio exposure measure, to be implemented from 2027.

Separately, as part of its periodic review of the G-SIB assessment methodology, the BCBS also launched a consultation on whether to incorporate the treatment of cross-border exposures within the European Banking Union in the G-SIB framework. The deadline for responses to the consultation is 14 January 2027.

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