Basel Committee finalises measures to address window-dressing in the G-SIB framework and consults on G-SIB methodology review

Key dates

2027-01-01

The increased G-SIB reporting and disclosure threshold of EUR 350 billion in leverage ratio exposure measure is to apply from 2027.

2027-01-14 Deadline

Deadline for stakeholders to submit comments on the consultation concerning treatment of cross-border exposures within the European Banking Union in the G-SIB methodology.

2030-01-01 Deadline

The requirement for in-scope banks to report and disclose stock G-SIB indicators using reporting-year average values is to be implemented.

Suggested considerations

• Firms should assess whether their leverage ratio exposure measure could meet or exceed the EUR 350 billion reporting and disclosure threshold from 2027, including under normal seasonal and stressed balance-sheet conditions.
• G-SIBs and other in-scope banks should map each stock G-SIB indicator to its underlying source systems and determine whether daily, monthly or other sufficiently frequent data capture will support a defensible reporting-year average by 1 January 2030.
• Compliance, regulatory reporting and finance teams may wish to review controls over data lineage, aggregation, estimation, reconciliation, management sign-off and audit evidence for G-SIB indicators.
• Risk and treasury functions should consider whether existing quarter-end or year-end balance-sheet management practices could create apparent window-dressing risk when indicators are assessed using annual averages.
• Firms should monitor national and regional implementation measures because the Basel amendments are standards requiring transposition or supervisory adoption rather than directly applicable law in every jurisdiction.
• Affected stakeholders should consider submitting comments on the European Banking Union cross-border exposure proposal by 14 January 2027, particularly where the treatment could alter systemic-importance scores, reporting scope or capital surcharge outcomes.
• Banks should avoid assuming that the final capital effect is known: independent commentary indicates that the impact cannot be quantified until detailed implementation provisions and resulting methodology calculations are available.

What changed

Banks participating in the G-SIB assessment exercise will be required to calculate, report and disclose all stock G-SIB indicators using average values over the reporting year instead of year-end values. The revised requirement is to be implemented by 1 January 2030, giving banks time to build reporting processes capable of collecting, validating, aggregating and evidencing data throughout the year. The threshold for G-SIB reporting and disclosure will increase from EUR 200 billion to EUR 350 billion of leverage ratio exposure measure from 2027. Separately, the Basel Committee is consulting on whether to incorporate its previously agreed treatment of cross-border exposures within the European Banking Union into the G-SIB assessment methodology; comments are invited by 14 January 2027. The

Who is affected

• Banks participating in the Basel G-SIB assessment exercise
• Existing and prospective G-SIBs
• Banks with a leverage ratio exposure measure of at least EUR 350 billion from 2027
• EU-authorised banking groups with cross-border exposures within the European Banking Union
• National banking supervisors responsible for implementing the Basel standards

Related regulations

• Basel Framework
• G-SIB assessment methodology
• Basel III leverage ratio framework
• European Banking Union prudential framework
• G-SIB higher-loss-absorbency requirements