G-SIB scoring moves to annual averages to curb window dressing
Banks must use annual averages for stock indicators in global systemically important bank (G-SIB) scores by January 1, 2030. The Basel Committee on Banking Supervision (BCBS) finalised the rule on October 16, 2026.
Annual averages replace year-end snapshots
Banks participating in the G-SIB assessment must report and publicly disclose all stock indicators using average values over the reporting year rather than year-end values.
The BCBS set implementation for January 1, 2030, allowing banks time to develop robust and comprehensive reporting processes.
The amendments constrain banks' ability to lower their scores by temporarily reducing their perceived systemic footprint around reporting reference dates.
Separately, the Committee raised the G-SIB reporting and disclosure threshold from €200 billion to €350 billion in leverage ratio exposure measure, effective from 2027.
Both changes are final amendments, distinct from the separate methodology consultation.
Banking union treatment remains open
The BCBS calls window dressing unacceptable because it undermines its standards' policy objectives and risks disrupting financial market operations.
Alongside the final rules, its periodic methodology review asks whether to incorporate the previously agreed treatment of cross-border exposures within the European Banking Union (EBU) into the G-SIB framework.
Stakeholders may comment on all aspects of the consultation by January 14, 2027; the EBU treatment remains a consultation question rather than a final amendment.
Two tracks, different status
Annual averaging targets temporary reductions in measured systemic importance, not merely their disclosure.
Banks have until January 2030 to build the reporting process.
The treatment of cross-border EBU exposures remains separate and subject to consultation.