Regulatory Alerts2025-04-17 | Gazette No. 2432/03Criteria Used to Designate Domestic Systemically Important Banks Rules No. 01 of 2025
The Central Bank of Sri Lanka has issued Rules No. 01 of 2025 to establish a quantitative, indicator-driven framework for designating Domestic Systemically Important Banks (D-SIBs) among all licensed commercial and specialized banks. The criteria evaluate systemic importance across four categories—size, interconnectedness, substitutability, and complexity—and allow for supervisory discretion to adjust classifications. Effective April 17, 2025, the rules mandate annual data collection and allocate designated D-SIBs into three equally sized buckets that impose progressively higher loss absorbency capital requirements.
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