Loosening ties, pt 1: how US G-Sibs cut intra-system assets

The interconnectedness of big US banks at year-end is one measure used to size their systemic risk capital charges. Because of this, the top eight lenders typically cut intra-financial system assets and liabilities in the last quarter of each year – but target different exposures to varying extents.

Goldman Sachs cut the most intra-financial system assets of the group in the final quarter of 2018, by $28.8 billion (8.9%). In Q4 2017, it cut $17.3 billion (6.8%). Of these, over-the-counter