Macroprudential policy and financial stability glossary



global systemically important bank
global systemically important institution
G-SII buffer
global systemically important institutions (G-SII) buffer
global systemically important institutions (G-SII) buffer
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. Phasing-in arrangements apply between 2016 and 2019.