Office Of Financial Research Update: “Updated Bank Data Show Rising Systemic Importance Of Asian Banks”

The OFR issued new blog, “Updated Bank Data Show Rising Systemic Importance of Asian Banks.” The blog, by OFR Deputy Director for Research and Analysis Stacey Schreft, says that new data on the world’s largest banks show the increasing systemic importance of Asian banks. The data also show that U.S. banks’ systemic footprint still dominates the global totals. Indeed, eight U.S. banks are still considered global systemically important banks (G-SIBs). G-SIBs must hold more capital than other banks. Among the U.S. banks in the tier below G-SIBs, the U.S. operations of a few foreign banks rank as the most systemically important, according to the blog.

The blog also says that for U.S. non-G-SIB banks, the data continue to support the use of systemic importance metrics rather than asset size alone to set thresholds for heightened regulation. Additionally, a bank’s systemic importance is more desirable to use as a regulatory threshold than asset size alone, which could affect bank lending.

The blog can be found here.

The updated online G-SIB Scores Interactive Chart and dataset can be found here.

The OFR home page is at: https://www.financialresearch.gov/.