Deutsche Bundesbank Research Brief | 69th edition – September 2024
by Kamil Pliszka, Carina Schlam
Global systemically important banks (G-SIBs) have to comply with additional buffer requirements owing to their size and interconnectedness within the banking sector. The buffer level banks are expected to meet depends on their exposures at a certain point in time. A new study shows that G-SIBs reduce their exposures more strongly – twice as strongly, in fact – than other banks at period-end reporting dates. As a result, the buffer level may be too low to cover the additional risk associated with G-SIBs.
Link:
Research Brief: How the design of own funds requirements can influence banks’ behaviour