Basel Committee takes tiered capital approach to Sifis

A long-awaited set of proposals on systemically important financial institutions is expected to be published by the Financial Stability Board within weeks, but that hasn’t stopped some countries forging their own responses. Nick Sawyer reports

From the earliest days of the financial crisis, regulators knew they had to deal with financial institutions that had become too big to fail. Now, nearly three years on from a string of taxpayer-funded rescues in late 2008, proposals are due for release. A long-awaited Financial Stability Board (FSB) paper on systemically important financial institutions (Sifis) is expected by the end of this month, which will propose how Sifis should be identified, the scale of a capital surcharge, and what