The Basel Committee has developed 12 principles for dealing with domestic systemically important banks (D-SIBs). Seven of the principles focus on the establishment of a methodology to identify D-SIBs. The rest set out a requirement for national authorities to demand higher loss absorbency (HLA) from D-SIBs. HLA calibration should depend on quantitative data, country-specific factors and supervisory judgment, and the resulting requirements should be met fully by Common Equity Tier 1. HLA requirements can be imposed by both home and host authorities at, respectively, parent and subsidiary levels, and the parent bank should be adequately capitalised on a standalone basis. The Basel Committee will monitor adoption of the principles through peer reviews and adding the D-SIBs framework to its Basel 3 regulatory consistency assessment programme. (Source: Basel Committee’s D-SIBs Framework)