BCBS 255

From Open Risk Manual


BCBS 255 is a document published by the Basel Committee on Banking Supervision on July 2013 in the Macroprudential category.


Global systemically important banks: updated assessment methodology and the higher loss absorbency requirement.


This standard describes the Basel Committee's methodology for assessing and identifying global systemically important banks (G-SIBs). It also describes the additional loss absorbency requirements that will apply to G-SIBs, the phase-in arrangements for these requirements and the disclosures that banks above a certain size are required to make to enable the framework to operate on the basis of publically available information.

The assessment methodology for G-SIBs is an indicator-based approach comprising five broad categories: size, interconnectedness, lack of readily available substitutes or financial institution infrastructure, global (cross-jurisdictional) activity and complexity. Banks are designated as G-SIBs based on these indicators and supervisory judgement.

G-SIBs are subject to higher capital requirements and other policy measures to reduce the probability and impact of their failure. In particular, they must maintain additional capital buffers, the size of which range from 1% to 2.5% Common Equity Tier 1 (CET1) depending on a bank's systemic importance. The framework also envisages higher levels, to discourage banks from becoming even more systemically important. These higher loss absorbency requirements come into effect in parallel with the Basel III capital conservation and countercyclical buffers, between 1 January 2016 and 1 January 2019.

Document Profile

  • Publication Date: July 2013
  • Publication Type: Standards
  • Publication Status: Consolidated
  • Publication Category: Macroprudential
  • Number of Pages: 23
  • Keywords: GSIB, SIFI, Surcharge, Externalities

See Also


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