The Basel Committee on Banking Supervision issued the rules text on the assessment methodology for global systemically important banks (G-SIBs) in November 2011. The G20 Leaders then asked the Committee and the Financial Stability Board to work on extending the G-SIFI framework to domestic systemically important banks (D-SIBs).
The D-SIB framework is best understood as taking the complementary perspective to the G-SIB regime by focusing on the impact that the distress or failure of banks (including by international banks) will have on the domestic economy. The Committee has developed a set of principles that constitutes the D-SIB framework. The 12 principles can be broadly categorised into two groups: (Principles 1 to 7) focuses mainly on the assessment methodology for D-SIBs while the second group (Principles 8 to 12) focuses on higher loss absorbency for D-SIBs.