The Basel Committee has finalised a change that will measure stock indicators in the global systemically important bank framework using reporting-year averages from 1 January 2030. Averaging reduces the influence of a bank temporarily shrinking exposures around 31 December and rebuilding them after the measurement date. The lead time gives banks and supervisors time to establish the required data and disclosure processes.[1][2]
The scoring framework ranks systemic importance rather than ordinary credit quality. A bank’s indicator score can affect its G-SIB bucket and therefore its additional loss-absorbency requirement. Research cited by the Committee found repeated year-end contractions in some EU G-SIB scores, including temporary reductions in intra-financial-system links and derivatives positions.[5][2]
Three decisions with different dates
The final standard and the open consultation
| Measure | Value | Context |
|---|---|---|
| Stock indicators | Reporting-year averages | The final text applies averaging to stock G-SIB indicators rather than relying on a single year-end value.Source 2 |
| Implementation | 1 January 2030 | The long lead time is intended to support robust data collection and disclosure.Source 1 |
| Reporting threshold | €350bn from 1 January 2027 | The leverage-ratio exposure threshold rises from €200bn. This changes the assessment sample and disclosure perimeter; it does not by itself remove a bank from G-SIB status.Source 1Source 2 |
| European Banking Union question | Consultation closes 14 January 2027 | The Committee is asking whether its previously agreed EBU treatment should be incorporated into the formal methodology.Source 3 |
The reporting threshold rises by €150 billion, a 75% nominal increase from €200 billion to €350 billion. That changes the reporting and disclosure gate. A bank’s G-SIB classification and additional loss-absorbency requirement continue to depend on the scoring methodology and its cut-offs.[1][2]
Point-in-time measurement versus the revised approach
| Feature | Existing framework | Revised treatment |
|---|---|---|
| Reference value | Year-end values for stock indicators | Average values over the reporting yearSource 2 |
| Main vulnerability | Temporary balance-sheet contraction can depress the reference-date score | Repeated observations make a short year-end reduction less influentialSource 1Source 5 |
| Operational consequence | One principal reporting-date snapshot | More data points, controls and public disclosure processesSource 2 |
| Start date | Current methodology continues during transition | 1 January 2030Source 1 |
The euro-area question remains open
In 2022 the Committee agreed to calculate parallel scores for G-SIBs headquartered in the European Banking Union. Those parallel scores recognise 66% of the score reduction that would result from treating intra-EBU exposures as domestic. The arrangement was designed to influence bucket allocation through supervisory judgement, without changing which banks are classified as G-SIBs and without changing the scores of banks outside the EBU.[4]
The new consultation asks whether the previously agreed EBU treatment should enter the formal methodology. Its existing 66% recognition and supervisory-judgement approach are the starting point for that review, with comments due by 14 January 2027. Final calibration will follow the consultation process.[3][4]
The implementation sequence gives banks two different preparation tasks: assess the higher reporting threshold from 1 January 2027, then build consistent intra-year indicator data for averaging in 2030. Basel standards are implemented through member jurisdictions, so the domestic measures will determine binding local requirements. The EBU consultation proceeds alongside those final standard changes.[2][3][1]
Sources & further reading
- Basel Committee finalises G-SIB window-dressing measures and opens methodology consultation Basel Committee on Banking Supervision · 16 Oct 2026 · Accessed 16 Oct 2026
- Amendments to the G-SIB framework to address window dressing Basel Committee on Banking Supervision · 16 Oct 2026 · Accessed 16 Oct 2026
- Global systemically important banks: methodology review consultation Basel Committee on Banking Supervision · 16 Oct 2026 · Accessed 16 Oct 2026
- Basel Committee agreement on the European Banking Union treatment Basel Committee on Banking Supervision · 31 May 2022 · Accessed 16 Oct 2026
- Is window dressing by banks systemically important? Bank for International Settlements · Accessed 16 Oct 2026