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ARTICLE · 17 AUGUST 2011

Defining Global Systemically Important Banks And Additional Loss Absorbency Requirements

Morrison Foerster
Morrison Foerster
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Morrison Foerster

Morrison Foerster

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On 19 July 2011, the Basel Committee on Banking Supervision ("BCBS") and the Financial Stability Board ("FSB") published two papers relating to entities regarded as globally systemic important financial institutions ("G-SIFIs").

United StatesFinance and Banking

On 19 July 2011, the Basel Committee on Banking Supervision ("BCBS") and the Financial Stability Board ("FSB") published two papers relating to entities regarded as globally systemic important financial institutions ("G-SIFIs"). The first paper prepared by the BCBS which we consider in more detail below sets out proposals for an assessment methodology for determining whether a banking institution should be regarded as a globally systemically important bank ("G-SIB") and the additional capital requirements that G-SIBs should be subject to.1 The second paper prepared by the FSB, which we will discuss in a separate alert, sets out proposals for a framework for the resolution of failing institutions.2

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