Basel Committee prepares crackdown on financial institution ‘window dressing’

The Basel Committee on Banking Supervision is proposing reforms to its framework for international systemically necessary banks (G-Sibs) after discovering proof of “window dressing”.

The committee stated banks had been making sizeable changes to their positions, notably in derivatives, across the year-end – the second knowledge is collected to evaluate lenders’ systemic significance.

Analysis by the committee finds window dressing by G-Sibs accounts for round half of the noticed year-end contractions in