G-Sib assessments questioned as BPCE put back in after just one year out

The Financial Stability Board’s latest stab at classifying banks of globally systemic importance, published on November 16, has got some analysts a bit hot under the collar.

The number of G-Sibs fell from 30 to 29 this year, making the total the same as it was when the initial list was first drawn up in 2011.

Bank of America and China Construction Bank (CCB) moved into lower categories of systemic importance, Groupe BPCE was added back into the list, while Nordea and RBS were removed altogether.

The G-Sib bucket list: click image to expand

As a note published on November 19 by Scope Ratings points out (‘Is the FSB’s scorecard approach for G-Sib classification fit for purpose?’), changes to the list “are not incidental matters”, given the capital implications of moving between Buckets 1 through 5 – which carry, respectively, 1%, 1.5%,