The Basel Committee on Banking Supervision has launched a consultation to address “window-dressing” by global systemically important banks, highlighting the need to address a practice that can have regulatory implications.
Window-dressing refers to the practice of reducing certain balance sheet items ahead of anticipated reporting dates to appear safer and therefore hold less loss-absorbing buffers. G-SIBs fall into five buckets, each corresponding to a different level of loss absorbency requirements.
