G-SIB
Business & Finance abbreviation · Banking
| Stands for | Global systemically important bank |
|---|---|
| Categories | Business & Finance |
G-SIB stands for Global systemically important bank, a banking abbreviation.
Bank whose size, interconnectedness, complexity and cross-border activity are such that its failure could disrupt the global financial system, as designated each year by the Financial Stability Board. G-SIBs must hold extra capital and meet stricter resolution requirements.
Example: As a G-SIB, the bank must hold an additional capital buffer of 2 percent of risk-weighted assets.
Usage notes
The FSB list includes about 30 banks, among them JPMorgan Chase, HSBC, BNP Paribas and Bank of China. Banks are placed in buckets that set their surcharge, from 1 to 3.5 percent of risk-weighted assets. G-SIBs must also meet total loss-absorbing capacity (TLAC) requirements so they can be wound down without taxpayer bailouts.
Related abbreviations
More banking abbreviations
- EDD – Enhanced due diligence
- EFT – Electronic funds transfer
- EMV – Europay, Mastercard and Visa
- FD – Fixed deposit
- FI – Financial institution
- FPS – Faster Payments Service
- IBAN – International Bank Account Number
- IFSC – Indian Financial System Code
- IMPS – Immediate Payment Service
- KYC – Know your customer
- LCR – Liquidity coverage ratio
- LDR – Loan-to-deposit ratio