BIS central bankers’ speeches  7  Addressing too-big-to-fail problem The Basel Committee will group G-SIBs into different categories of systemic importance based on the score produced by the indicator-based measurement approach. G-SIBs will be initially allocated into four buckets based on their scores of systemic importance, with varying levels of additional loss absorbency requirements applied to the different buckets.
Based on policy judgment derived from various empirical analysis, the Basel Committee has determined that the magnitude of additional loss absorbency for the highest populated bucket should be 2.5% of risk-weighted assets at all times, with an initially empty top bucket (fifth bucket) of 3.5% of risk-weighted assets. The magnitude of additional loss absorbency for the lowest bucket should be 1.0% of risk-weighted assets.