G-SII · Banking Resolution

G-SII

Definition

A G-SII — global systemically important institution — is the EU designation of a banking group on the FSB's global systemically important bank list, carrying an additional capital buffer and the TLAC minimum requirement.

Designation

Each November the FSB, applying the Basel Committee's methodology, publishes the list of global systemically important banks, scored on size, interconnectedness, substitutability, complexity and cross-border activity. EU law mirrors the designation as “G-SII” through Article 131 CRD: designated groups carry an additional Common Equity Tier 1 buffer between 1% and 3.5%, rising with the score bucket.

Consequences in resolution

For resolution purposes the designation triggers the TLAC minimum of Article 92a CRR and the strictest subordination expectations in MREL policy. The EU's G-SIIs — among them BNP Paribas, Deutsche Bank, Santander, ING and Groupe BPCE — are all planned for resolution rather than insolvency, and their profiles in this database reflect the corresponding “gsib” entity type.