New BIS Working Paper: Is Window Dressing by Banks Systemically Important?
Author(s): Luis Garcia, Ulf Lewrick and Taja Sečnik Date: August 2021 Abstract: We study banks’ year-end window dressing in the European Union to assess how it affects the identification of global systemically important banks (G-SIBs) and the associated capital surcharges. We find that G-SIBs compress their balance sheet at year-end to an extent that they[…]