G-SIBs Need To Simplify Their Structure, Little Progress Made

Research from the Systemic Risk Council finds that there hasn’t been much progress getting complex, global banks to simplify their corporate structure

For all the regulatory change we’ve seen in the last eight years, global systemically important banks (G-SIBs) are no less complex today than they were before the crisis, according to research released today by the Systemic Risk Council studying the 29 institutions designated as G-SIBs by the Financial Stability Board in 2013.

“The complex structure and opaque connections among G-SIBs impeded oversight and market discipline before the crisis and greatly complicated management and resolution after the crisis”, says Richard Herring, who co-authored the paper Corporate Structures, Transparency and Resolvability of Global Systemically Important Banks with Jacopo Carmassi. “Greater progress...