Regulatory Alerts2019-01-11
Domestic Systemically Important Banks (D-SIBs) Framework
The National Bank of Rwanda issued a framework to identify and regulate Domestic Systemically Important Banks (D-SIBs) based on their systemic impact. Using an indicator-based measurement approach across size, interconnectedness, substitutability, and complexity, the regulator classifies banks into three buckets that mandate Higher Loss Absorbency requirements ranging from 0.5% to 1% of risk-weighted assets. Designated D-SIBs must additionally comply with enhanced liquidity standards, quarterly stress testing, recovery and resolution planning, and intensified supervisory oversight effective from 2019.
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