Beyond a year-end snapshot
The Basel Committee on Banking Supervision finalized changes on October 16 aimed at preventing large banks from temporarily shrinking their reported systemic footprint around year-end [1].
Banks participating in the global systemically important bank, or G-SIB, assessment will report and disclose stock indicators using averages over the reporting year. The revised standard is to be implemented by January 1, 2030 [1, 2].
The committee says the practice known as window dressing undermines the standards’ purpose and risks disrupting financial markets [1].
A higher threshold and a separate consultation
The threshold for G-SIB reporting and disclosure will rise from €200 billion to €350 billion in leverage-ratio exposure from January 1, 2027 [2].
Separately, the committee opened a consultation on incorporating its previously agreed treatment of cross-border exposures within the European Banking Union into the G-SIB methodology. Comments are due January 14, 2027; that proposal is distinct from the finalized reporting changes [3].