Global systemically important bank

A bank whose failure would damage the global financial system, judged by size, interconnection and complexity. It faces a capital surcharge.

Where you will meet it

Global systemically important bank comes up in 2 learning outcome notes across the FRM syllabus. A few of them:

• Solvency, Liquidity, and Other Regulation After the Global Financial Crisis
  FRM Part II · Operational risk and resilience

  “G-SIBs, the globally systemically important banks, must also hold a surcharge of 1% to 3.5% of RWA in CET1 according to their bucket.”

• High-level summary of Basel III reforms
  FRM Part II · Operational risk and resilience

  “For the leverage ratio, the exposure measure is refined and G-SIBs face a buffer equal to 50% of their risk-based surcharge.”

All terms beginning with G · FRM glossary

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