The Basel, Switzerland-based Financial Stability Board today updated its list of global systemically important banks subject to supplemental loss absorbency requirements. The requirements for the eight U.S. banks on the list remained the same. Germany-based Deutsche Bank moved into a category requiring less loss absorbency, and Canada-based Toronto-Dominion Bank—the parent of Cherry Hill, N.J.-based TD Bank—was added to the list.
G-SIB designations are made using criteria issued by the Basel Committee on Banking Supervision, which also yesterday released documentation on the changes. G-SIBs on the list will be subject to requirements for their new categories effective Jan. 1, 2021.