Basel Committee consults on writing EBU parallel-score treatment into G-SIB framework
The Basel Committee wants to formalise the existing supervisory-judgment treatment of intra-European Banking Union exposures in the global systemically important bank methodology. The consultation does not change how EBU-headquartered banks are scored today; it hard-codes the 2022 agreement into SCO40 and the reporting instructions. For euro-area G-SIBs and their competitors, the stakes sit in what becomes permanent and what remains discretionary.
- The parallel scores for EBU-headquartered G-SIBs would recognise 66% of the score reduction that would result from treating intra-EBU exposures as domestic exposures under the cross-jurisdictional activity indicator.
- Any downward adjustment of an EBU-headquartered G-SIB is limited to a single bucket, and the parallel scores do not affect G-SIB classification or the scores and buckets of non-EBU banks.
- Because the proposals formalise existing treatment, the revisions would apply with immediate effect once finalised; comments are due by 14 January 2027.
- Banks with a leverage ratio exposure measure exceeding EUR 350 billion in the previous year-end must submit the full assessment data and publicly disclose the 13 indicators.
- The assessment methodology applies from 2027 based on end-2026 data, with the corresponding higher loss absorbency requirement applying from 1 January 2029.