G-SIBs (Globally Systemically Important Banks)

Globally Systemically Important Banks (G-SIBs) are financial institutions that are deemed crucial to the global economy. If one of these banks fails, it could trigger widespread financial instability and negatively impact economies worldwide. To address this risk, G-SIBs are subject to stricter regulations, including higher capital requirements and more rigorous oversight. This ensures they can withstand financial shocks and continue to operate effectively, thereby protecting the broader financial system and the public. Examples of G-SIBs include major banks like JPMorgan Chase, HSBC, and Deutsche Bank.