Playing it Safe: Global Systemically Important Banks after the Crisis

13 Pages Posted: 14 Oct 2019

See all articles by Tirupam Goel

Tirupam Goel

Bank for International Settlements (BIS)

Ulf Lewrick

Bank for International Settlements (BIS) - Monetary and Economic Department; University of Basel - Faculty of Business and Economics

Aakriti Mathur

Bank for International Settlements (BIS)

Date Written: September 22, 2019

Abstract

Post-crisis reforms aim to mitigate the systemic risks that arise from global systemically important banks (G-SIBs). Based on our estimates of G-SIBs' probability of distress, we find that their resilience has improved in recent years on the back of higher capital ratios. Furthermore, by benchmarking G-SIBs' balance sheet adjustments against those of other major banks, we show that these adjustments accord with the incentives set by the post-crisis regulatory framework. This suggests that the systemic importance of G-SIBs has declined in recent years.

JEL Classification: G21, G28, C25

Suggested Citation

Goel, Tirupam and Lewrick, Ulf and Mathur, Aakriti, Playing it Safe: Global Systemically Important Banks after the Crisis (September 22, 2019). BIS Quarterly Review, September 2019. Available at SSRN: https://ssrn.com/abstract=3468430

Tirupam Goel (Contact Author)

Bank for International Settlements (BIS) ( email )

Centralbahnplatz 2
Basel, Basel-Stadt 4002
Switzerland

Ulf Lewrick

Bank for International Settlements (BIS) - Monetary and Economic Department ( email )

Centralbahnplatz 2
CH-4002 Basel
Switzerland

University of Basel - Faculty of Business and Economics ( email )

Petersplatz 1
Basel, 4001
Switzerland

Aakriti Mathur

Bank for International Settlements (BIS) ( email )

Centralbahnplatz 2
Basel, Basel-Stadt 4002
Switzerland

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