Key Points:
The framework establishes a minimum set of principles
against which local regulators can evaluate whether a bank is a
D-SIB and what additional capital it must hold.
On 29 June 2012, the Basel Committee of Banking Supervision
issued a consultative document on its proposed framework for
domestic systemically important banks (D-SIBs).
The proposals supplement the framework for global systemically
important banks (G-SIBs) announced by the
Committee in December last year under which
G-SIBs are required to hold an additional capital buffer in
recognition of the potentially global impact of any failure on
their part.
The proposed D-SIB framework recognises that, while certain
banks may not be significant from an international perspective,
they nevertheless have an important impact on their domestic
economies. The framework establishes a minimum set of principles
against which local regulatory authorities such as the Australian
Prudential Regulatory