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.

Executive summary

The Basel Committee on Banking Supervision issued a consultative document on 16 October 2026 proposing to incorporate its 2022 agreement on the treatment of cross-border exposures within the European Banking Union (EBU) into the global systemically important bank (G-SIB) framework.…

Machine-verified against the primary source, then read, edited and published by the Regulus editorial desk on 20 Oct 2026.