Newsletter July/August 2012: Principles proposed to deal with local systemic banks

BASEL – Domestic systemically important banks (D-SIBs) are now in the regulators firing line. The Basel Committee has developed a set of principles for identifying such D-SIBs, and setting additional capital requirements to reduce the risk that they pose. These principles are intended as a complement to the rules issued last November to contain the potentially systemic threat from large, internationally-active active banks – G-SIBS or global systemically important banks.