Extra capital needed for institutions deemed too big to fail, FSB warns

Systemically important financial institutions (Sifis) whose distress or failure would cause significant dislocation in the global financial system and adversely affect the economy will need loss absorbing capacity beyond minimum Basel III standards, the Financial Stability Board (FSB) finally confirmed today.

In a long-awaited report, Reducing the moral hazard posed by systemically important financial institutions, published at the conclusion of the Group of 20 (G-20) summit in Seoul, the FSB