GSIB-Designation Methodology
Reflecting concerns expressed about banks that window-dress key regulatory data as the post-crisis framework took shape,the Basel Committee has now issued a request for views on how to prevent this when it comes to GSIB calculations related to their surcharge or possible designation. This is now done annually, but Basel wants to require averaging on perhaps a daily basis to prevent presentations of very short-term data that under-estimate a designated GSIB’s or potential designee’s systemic footprint as Basel has decided to calculate it.