ABA Banking Journal
No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
SUBSCRIBE
ABA Banking Journal
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
No Result
View All Result
No Result
View All Result
ADVERTISEMENT
Home Compliance and Risk

Treasury Report: Asset Thresholds Insufficient to Identify SIFIs

October 26, 2017
Reading Time: 1 min read

Size alone is not sufficient to identify systemically important banks, according to a report issued today by the Treasury Department’s Office of Financial Research. The report recommended that all but the largest global systemically important banks — currently eight in the United States — be assessed for systemic risk with a modified version of a multifactor approach used in Europe.

The report found that size is not always an effective proxy for systemic importance, noting that some banks with large asset figures have substantially lower multifactor systemic risk scores than others with relatively smaller asset sizes. “[F]or large banks that are not G-SIBs, asset-size thresholds are too simplistic to assess systemic importance,” it said.

For example, a multifactor approach like that used by the Basel Committee on Banking Supervision to designate G-SIBs might include size, interconnectedness, substitutability, complexity and cross-jurisdictional activity. The report’s findings reflected the American Bankers Association’s long-held view that bank supervision should move away from arbitrary asset thresholds toward a more nuanced and tailored approach to assessing systemic risk.

“Our analysis indicates that a multifactor approach could replace the $50 billion asset-size threshold that some U.S. regulations use to identify U.S. banks that are not G-SIBs, but warrant enhanced regulation,” said Richard Berner, an Obama appointee serving as director of OFR. “Relatively large but less-systemic U.S. institutions might no longer face regulatory costs disproportionate to their importance.”

ADVERTISEMENT
Tags: SIFIsTailored regulation
ShareTweetPin

Related Posts

U.S. Supreme Court settles circuit split, rules IRS may summons bank information without account holder notice

ABA asks IRS to delay new reporting requirement

Newsbytes
June 30, 2025

ABA submitted a comment letter to the IRS requesting that the agency delay by 12 months the effective date of its new "code Y" reporting requirement on Forms 1099-R and 5498 for qualified charitable distributions made by individual...

ABA supports climate disclosure exclusions, warns of alternative disclosures

ABA supports climate disclosure exclusions, warns of alternative disclosures

Newsbytes
June 30, 2025

In addition to California, for example, five states are currently debating similar laws for companies of various sizes. Among other recommendations, ABA also recommended flexibility in how commercial loan exposures and emissions are categorized by industry. 

OCC releases Q3 bank trading revenue report

OCC report: Banking system sound, key risks highlighted

Compliance and Risk
June 30, 2025

The strength of the federal banking system remains sound, the OCC reported in its most recent semiannual risk perspective report. The report covers risks facing national banks, federal savings associations, and federal branches and agencies based on data...

ABA offers support, recommendations for Treasury’s efforts to increase payment system efficiency

ABA offers support, recommendations for Treasury’s efforts to increase payment system efficiency

Newsbytes
June 30, 2025

ABA sent a letter in response to the Treasury's request for information regarding modernizing payments to and from the U.S. government, outlines recommendations to help the agency reach its deadline to transition all federal payments that are currently...

2025 bank marketing trends

ABA Viewpoint: Toward a smarter framework for bank asset thresholds

Compliance and Risk
June 30, 2025

Indexing regulatory thresholds for growth makes sense. Here’s how to do it most effectively.

Fighting fraud on the frontline

Fighting fraud on the frontline

Compliance and Risk
June 30, 2025

Customer inquiries and complaints are important tools for detecting scams, but structural barriers in the bank may prevent them from being fully utilized.

NEWSBYTES

ABA asks IRS to delay new reporting requirement

June 30, 2025

ABA supports climate disclosure exclusions, warns of alternative disclosures

June 30, 2025

OCC report: Banking system sound, key risks highlighted

June 30, 2025

SPONSORED CONTENT

AI Compliance and Regulation: What Financial Institutions Need to Know

Unlocking Deposit Growth: How Financial Institutions Can Activate Data for Precision Cross-Sell

June 1, 2025
Choosing the Right Account Opening Platform: 10 Key Considerations for Long-Term Success

Choosing the Right Account Opening Platform: 10 Key Considerations for Long-Term Success

April 25, 2025
Outsourcing: Getting to Go/No-Go

Outsourcing: Getting to Go/No-Go

April 5, 2025
Six Payments Trends Driving the Future of Transactions

Six Payments Trends Driving the Future of Transactions

March 15, 2025

PODCASTS

Podcast: Inside ABA’s new Treasury Check Verification System API

June 25, 2025

Podcast: Staying close to clients amid tariff-driven volatility

June 18, 2025

Podcast: Old National’s Jim Ryan on the things that really matter

June 12, 2025
ADVERTISEMENT

American Bankers Association
1333 New Hampshire Ave NW
Washington, DC 20036
1-800-BANKERS (800-226-5377)
www.aba.com
About ABA
Privacy Policy
Contact ABA

ABA Banking Journal
About ABA Banking Journal
Media Kit
Advertising
Subscribe

© 2025 American Bankers Association. All rights reserved.

No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive

© 2025 American Bankers Association. All rights reserved.