Global Systemically Important Banks (G-SIBs)

Global Systemically Important Banks (G-SIBs) are large international banks whose failure could pose a significant threat to the global financial system and economy. Because of their size, interconnectedness, and importance, regulators impose extra oversight and capital requirements on them to reduce the risk of collapse. These banks are crucial to the stability of financial markets worldwide, and their sound functioning helps prevent widespread economic disruptions. Essentially, G-SIBs are key financial institutions whose stability is vital to maintain global economic stability.