Macroprudential policy and financial stability glossary
- G-SIB
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global systemically important bank
- G-SII
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global systemically important institution
- G-SII buffer
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See global systemically important institutions (G-SII) buffer
- global systemically important institutions (G-SII) buffer
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A capital buffer that aims to reduce the moral hazard created by the implicit state support and guarantee of bail-out using taxpayers’ money that such institutions enjoy due to their size, cross-border activities and interconnectedness. It has been implemented in Europe via Article 131 CRD IV and amounts to 1-3.5% of total risk exposure amount, to be met with CET1 capital, depending on the degree of systemic importance of an institution.