Direct Answer
Global Systemically Important Banks (G-SIBs) are massive international institutions. When they operate branches in India, the RBI subjects them to proportionate capital buffer regulations
Step 1: Identify G-SIB Status
Check if the foreign bank is recognized as a G-SIB by its home regulator.Step 2: Determine Home Buffer
Identify the specific additional CET1 buffer prescribed by the home country’s regulator.Step 3: Calculate Indian Surcharge
Apply this buffer proportionally strictly to the bank’s Risk-Weighted Assets (RWAs) located within India.
Check if the foreign bank is recognized as a G-SIB by its home regulator.Step 2: Determine Home Buffer
Identify the specific additional CET1 buffer prescribed by the home country’s regulator.Step 3: Calculate Indian Surcharge
Apply this buffer proportionally strictly to the bank’s Risk-Weighted Assets (RWAs) located within India.