Global systemically important bank (G-Sib)
A global systemically important bank is bank whose systemic risk profile is deemed to be of such importance that the bank’s failure would trigger a wider financial crisis and threaten the global economy. The Basel Committee has developed a formula for determining which banks are G-Sibs, deploying criteria including size, interconnectedness and complexity. National regulators subject banks determined to be G-Sibs to stricter prudential regulation such as higher capital requirements and extra surcharges, or more stringent stress tests.
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