The addition of AGBank increases the overall number of G-SIBs on FSB's list to 30.
Systemically important banks are defined as those whose distress or disorderly failure would cause significant disruption to the global financial system and economic activity due to their size, complexity and interconnectedness. These banks are often referred to as "too-big-to-fail."
The FSB started identifying banks that are considered systemically important in 2011 following an endorsement by Group of 20 leaders in 2010. The FSB updates its list every November based on a methodology developed by the Basel Committee on Banking Supervision (BCBS) and the latest update is based on end-2013 financial data.Both the FSB and the Basel Committee are based at the Bank for International Settlements (BIS) in Basel, Switzerland.
Banks on FSB's list of G-SIBs are subject to tougher financial regulation, including higher loss absorbency requirement that is being phased in from Jan. 1, 2016, resolution plans in the event of a collapse, and higher supervisory expectations for risk management functions, risk governance and internal controls.