Abstract: To impose prudential regulation on systemically important banks, the Basel Committee on Banking Supervision formulated an assessment methodology for global systemically important banks. On this basis, the People's Bank of China (PBC) and the National Administration of Financial Supervision have adopted the classification criteria for systemically important banks in China, and would dynamically update the list of banks annually starting from 2021. Given the recent collapse of Silicon Valley Bank in the United States and China's national conditions, we argued that there is room for further optimization of the classification criteria for systemically important banks in China: first, cross-provincial business activities of banks should be taken into account. Second, a reasonable minimum asset threshold should be established. Third, the contagion effect of similar banks should be watched closely. In response to these considerations, we put forward corresponding policy recommendations.
