Global Systemically Important Bank

Definition ∞ A Global Systemically Important Bank (G-SIB) is a financial institution whose failure could precipitate a broader financial crisis due to its substantial size, interconnectedness, and operational complexity. These banks are subject to stringent regulatory oversight and higher capital requirements to mitigate the systemic risks they pose to the global economy. Their stability is considered vital for the proper functioning of international financial markets.
Context ∞ G-SIBs are frequently mentioned in crypto news when discussing the potential impact of digital assets on traditional financial stability and regulatory responses. Debates often concern how these large institutions might adopt or interact with cryptocurrencies and blockchain technology, and the regulatory challenges that arise from such integration. Their cautious approach to digital assets reflects the strict requirements placed upon them to maintain financial stability.