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Following the global financial crisis, there has been renewed scrutiny on the impact that the failure of large financial institutions could have on the broader financial system. The interconnected nature of today’s global systemically important banks (G-SIBs) has contributed to a system where the potential failure of a single large institution can have wider effects that reverberate throughout the global economy. This in turn has led to the Basel III reforms, spearheaded by the Basel Committee on Banking Supervision (BCBS), which aim to improve the resiliency of banks and banking systems. Over and above the higher requirements for all internationally active banks, the Committee’s G-SIB standards require additional going-concern loss absorbency for G-SIBs.
(Texto en inglés)
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