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Guyana Venezuela dispute

stylish lining

Context: A British warship has arrived in Guyana amid rising tensions from a border dispute between the former British colony and Venezuela

Factors Contributing to Tensions:

Territorial Dispute: The primary cause of tension is the longstanding territorial dispute over the Essequibo region, a significant part of Guyana. Venezuela disputes the 1899 Arbitral Award that established the border, claiming historical grievances.

  1. 1899 Arbitral Award:
    • The 1899 Award settled the boundary dispute, allocating the majority of the disputed territory to British Guiana. Venezuela consistently challenges the legitimacy of this ruling.
  2. Oil and Natural Resources:
    • The discovery of oil reserves in Guyana's Stabroek Block intensified tensions, as the disputed Essequibo region is believed to be Resource-rich. Venezuela objected to Guyana's oil exploration, escalating the dispute.
  3. Political Changes and Regional Dynamics:
    • Changes in political leadership in both nations influenced the dispute, sometimes exploiting historical grievances for domestic support.
  4. Diplomatic Efforts:
    • Past diplomatic efforts, involving the UN, US, and regional organizations, failed to yield a resolution.
  5. International Involvement:
    • The international community generally supports Guyana's sovereignty based on the 1899 Award. Venezuela seeks to internationalize the issue and challenges the award's validity.
  6. Military Posturing:
    • Instances of military posturing by both nations raised concerns about potential conflict.

Way Ahead - Suggestions for Resolution:

  1. International Mediation: Encourage international mediation facilitated by neutral parties like the UN or OAS for constructive dialogue.
  2. Bilateral Talks: Promote direct, open, and sincere bilateral talks to address underlying issues.
  3. Utilize Regional Organizations: Leverage regional organizations like CARICOM for dialogue and regional cooperation.
  4. Legal Clarification: Seek legal clarification on the 1899 Award, potentially referring the matter to the ICJ.
  5. Economic Cooperation: Explore economic cooperation and joint ventures to reduce tensions.
  6. People-to-People Diplomacy: Promote cultural exchanges and joint projects to foster positive relations at the grassroots level.
  7. Conflict Prevention Mechanisms: Establish mechanisms for conflict prevention, including transparency in military activities.

  8. Engage International Community:  Seek support from the international community for a peaceful resolution.

  9. Long-Term Vision: Develop a long-term vision for regional cooperation addressing underlying issues.

  10. Public Diplomacy: Engage in public diplomacy to garner public support for diplomatic solutions. Both nations need commitment to dialogue, compromise, and a shared vision for regional stability. Success requires patience, perseverance, and a genuine willingness to find common ground.

 

 

 

Coal production in country

stylish lining

Context: The coal production in the country has shot up to over 664 million tonnes during the current financial year which is a robust 12.29 percent increase over the corresponding figure of over 591 million tonnes for the same period of the previous year.

Significance:

  • This increase ensures a consistent and robust coal supply to meet the energy needs of the power sector.
  • Efficient coal supply to Thermal Power Plants has resulted in robust coal stock levels at various pitheads, highlighting the effectiveness of the coal supply chain in ensuring seamless distribution nationwide.

Types of coal:
Coal, originating from the organic matter of wood, is formed through a gradual process. When extensive forest areas become submerged under sediments, the wood undergoes combustion and decomposition due to heat from below and pressure from above. This transformative process into coal unfolds over centuries.
The classification of coal is based on its carbon content and the time period involved. Considering carbon content, coal can be categorized into three types:

Anthracite:
Recognized as the highest-quality coal, anthracite boasts the highest calorific value, containing 80 to 95% carbon. It exhibits slow ignition with a distinct blue flame and is found in limited quantities, notably in Jammu and Kashmir.
Bituminous:
With a low moisture content and a carbon content ranging between 60 to 80%, bituminous coal is valued for its high  calorific value. Deposits of bituminous coal are prevalent in states such as Jharkhand, West Bengal, Odisha, Chhattisgarh, and Madhya Pradesh.

Lignite:
Characterized by a carbon content of 40 to 55%, lignite, often brown in color, has high moisture content, resulting in smoke during combustion. Deposits of lignite are found in regions like Rajasthan, Lakhimpur (Assam), and Tamil Nadu.
Peat:
Representing the initial stage of the wood-to-coal transformation, peat has a low calorific value and contains less than 40% carbon.
This classification based on carbon content provides a comprehensive understanding of the diverse types of coal and their respective qualities.
Coal Imports

  • In adherence to the existing import policy, consumers are granted the freedom to import coal, subject to an Open General Licence, allowing them to make import decisions based on their commercial judgment and requirements.
  • Steel Authority of India Limited (SAIL) and other steel manufacturing units are engaged in importing coking coal primarily to address the gap between demand and domestic availability, aiming to enhance production quality.
  • Non-coking coal is imported by various entities, including coal-based power plants, cement plants, captive power plants, sponge iron plants, industrial consumers, and coal traders.
  • For pig-iron manufacturers and consumers in the iron and steel sector utilizing mini-blast furnaces, coke is a major import.

Significance

  • India heavily relies on coal, constituting half of its commercial primary energy and serving as the primary SOURCE for electricity generation.
  •  In opencast coal mines, miners often avoid deep underground work as machinery takes on the bulk of extraction tasks, simplifying the process.
  • The ease of transport and storage, without the need for specialized equipment, contributes to the cost-effectiveness of coal-fired electricity.
  • Coal, when stored in cool and dry conditions, can be preserved indefinitely.
  • Moreover, coal power is economically advantageous compared to wood, oil, or gas-based heating. The coal industry provides substantial employment across various communities.

Disadvantages

  • However, the burning of coal generates pollutants like carbon dioxide, nitrogen oxides, sulphuric acids, and arsenic.
  • This combustion contributes to increased atmospheric CO2 levels, amplifying the sun's reflective power and contributing to global warming.
  • Extensive transportation networks required for coal distribution lead to environmental pollution through vehicle emissions.
  • Miners, despite protective measures, face health risks, notably coal miners' pneumoconiosis or black lung disease resulting from prolonged exposure to coal dust.

Way Forward

  • To enhance production and competition, there is a need for more world-scale coal operations. The government should reconsider coal pricing, transitioning from quantity-based grades to grades based on desired end-use.
  • A competitive coal mining sector can improve the country's capital-raising capacity. As railway projects face delays, alternative bulk transportation routes for coal must be explored.
  • The coal sector's major challenge, risk management, requires innovative instruments, contracting, and incentives. Introducing targeted financing can address growing issues in the power sector.
  •  Given India's coal's high ash content, efforts to reduce ash content and improve the grade would be beneficial.

 

Donkey routes: En route Europe, how Indians visit several countries to create ‘travel history’

stylish lining

Context: Last year, Serbia had to change its visa rules because of the illegal migrants, including Indians, flooding it as an entry point to Europe.
Background:

  • Serbia modified its visa rules last year due to pressure from the European Union, prompted by the misuse of its visa-free regime. Indians, among others, were exploiting this route as an illegal transit to enter European countries like Austria, Hungary, and Romania.
  • European authorities discovered over 1.3 lakh illegal immigrants in the first 10 months of 2022, with many being nationals from countries that previously had visa-free access through Serbia.
  •  Indians seeking illegal entry often manipulated their travel history by visiting countries like Nepal, Dubai, and Armenia before entering Serbia. This was done to present a credible travel background to immigration authorities.
  • The recent incident of a flight carrying 303 Indian nationals being halted in France, en route to Nicaragua, indicates a similar strategy. The passengers aimed to establish a travel history to appear as tourists, even though the visa requirements for Indians in Nicaragua are unclear.

Unpredictable and harsh journey

  • Agents often connect migrants, seeking illegal entry, with 'donkers' or people smugglers upon arrival in transit countries to facilitate their illegal passage to the final destination.
  • These 'donkers' charge exorbitant fees for their services, assisting migrants in evading border authorities and reaching their intended destinations.
  • Migrants frequently endure harsh and inhuman conditions during transit, lacking basic necessities like food, water, and proper ventilation. They are often concealed in cramped containers or delivery vehicles.

Case study: A 2021 case highlighted a young man from Punjab attempting to reach Italy via the Dubai-Serbia-Romania-Hungary route. He was transported in a small box in a delivery truck from Romania to the Hungarian border but returned to India after being unable to reach Italy.

  • A 2009 UNODOC report on Smuggling of Migrants from India to Europe documented cases of migrants drowning in unsafe vessels, suffocating in overcrowded trucks and ships, and falling victim to smuggling gangs.
  • A tragic incident in 1996 saw 283 migrants, mostly from Punjab, perish when their overcrowded boat capsized in the Mediterranean near Malta, highlighting the dangers of such illegal migration routes.
  • Even those who successfully reach their destination often find themselves trapped in cycles of exploitation and abuse, with many cases going unreported due to the migrants' fear of arrest and deportation.

Risks and challenges:

  1. Unconventional Migration Technique: Donkey flights involve the use of multiple, often indirect flight connections to enter a target country, usually one with stringent entry requirements.
  2. Motivated by Desperation and Misinformation: Individuals resort to this practice driven by desperation and misinformation, exploiting weaknesses in immigration systems.
  3. Risks to Individuals and Destination Countries: Donkey flights pose significant risks to individuals and raise concerns for destination countries due to their irregular nature.
  4. International Trafficking Connections: Agents in India collaborate with traffickers, establishing a connection all the way to the US. Failure to make payments can be a life-threatening situation for migrants.
  5. High Costs Involved: Donkey trips are expensive, with an average cost ranging from Rs 15 lakh to Rs 40 lakh. In some cases, costs escalate to as high as Rs 70 lakh.
  6. Legal Consequences: Illegally entering a country exposes migrants to risks such as detention, deportation, and potential criminal charges.
  7. Safety and Health Hazards: The lengthy and challenging journeys, unfamiliar environments, and the potential for exploitation contribute to physical and mental health risks for migrants.

Possible destinations:
Europe:

  •  Between 2005 and 2007, nearly 47% of immigration-related offences at Delhi airport were linked to destination countries in Europe.
  •  Approximately 27% of these cases were specifically associated with irregular migration to the United Kingdom.
  • Most instances of illegal migration to the UK involved routes through France, either after landing with a direct visa or reaching France through irregular routes facilitated by 'donkeys'.
  • Other preferred European destinations for irregular migration included Germany, Austria, Spain, Belgium, Italy, Greece, Norway, Switzerland, Sweden, Netherlands, Portugal, Finland, Poland, and Czech Republic.
  • Bosnia, Portugal, Poland, Czech Republic, and Hungary were identified as likely transit countries for onward travel, chosen due to easier visa processes.

America:

  • The popular donkey route from India to the US involves the initial step of reaching a Latin American country.
  • Countries like Ecuador, Bolivia, and Guyana offer visas on arrival for Indian citizens, facilitating the early stages of the journey
  • Brazil and Venezuela are among the countries that readily grant tourist visas to Indians, making them accessible stops in the migration route.
  • A contemporary trend is observed where migrants first travel to Europe before heading directly to Mexico
  • The strategy involves utilizing Latin American countries as a transit point to eventually reach the United States, reflecting the evolving dynamics of migration routes.

Estimation of migration of Indians

  • A considerable number of Indians are reportedly stranded in Spain after entering the country illegally, seeking general amnesty.
  • Indian detainees are also reported in various countries, including Ukraine, Turkey, Slovakia, Malaysia, Romania, and Poland, with intentions to reach Western European countries.
  • Indian Missions and Posts lack reliable data on the number of Indians staying or working illegally in foreign countries due to the lack of information-sharing by host nations.
  • Irregular migration is not limited to Punjab, with reports indicating significant numbers from Haryana, Himachal Pradesh, and Jammu & Kashmir.

Donkey flight

The term "donkey flight" originates from the Punjabi language, where it signifies the practice of moving from one place to another. This illicit method of immigration has become synonymous with the exploitation of vulnerable individuals who, enticed by the prospect of international travel, become victims of deceitful promises made by unscrupulous agencies. Numerous desperate families invest money with the expectation of obtaining promised visas.

Global impacts:

  1. Challenges for Destination Countries: The use of donkey flights can place significant pressure on immigration systems and give rise to security issues
  2. Ethical Considerations: Exploiting loopholes in immigration processes raises ethical questions about fairness and the treatment of vulnerable individuals
  3. Risk of Human Trafficking: Criminal networks might take advantage of desperation, potentially trapping individuals in exploitative situations

Way forward:

Addressing and tackling this problem requires the generation of additional employment opportunities within home countries. Initiatives should be implemented to offer facilities that contribute to an improved quality of life and livelihood. Stringent measures must be enforced against intermediaries involved in orchestrating these donkey route operations.

 

The hottest year

stylish lining

Context: With temperatures at all-time high in 2023, 2024 will be pivotal in reducing emissions, without compromising developmental needs

News:

  1. COP 21 Agreement: Eight years ago in Paris, countries agreed to limit global temperature increases to well below 2 degrees Celsius above pre-industrial levels and strive for a 1.5-degree Celsius limit as a defense against climate change.
  2. Unwritten Concord on 1.5 Degrees Celsius: The increasing frequency of extreme weather events post-COP 21 led to an informal consensus on the 1.5-degree Celsius limit as a crucial threshold in climate change mitigation.
  3. Close Approach to Threshold: In 2023, global temperatures came dangerously close to the 1.5-degree Celsius limit, with an average rise of 1.46 degrees Celsius above pre-industrial levels till November.
  4. Record-Breaking Temperatures: Every month from June onwards set a new record for being the hottest such month on record. November even saw two days warmer than 2 degrees Celsius above pre-industrial levels.
  5. Confirmation by WMO: The World Meteorological Organisation's (WMO) provisional State of the Global Climate Report confirms 2023 as the warmest year on record.
  6. Forecast for 2024: The WMO predicts that the planet will continue to get hotter in 2024, citing the influence of a warming El Niño event that emerged during the Northern Hemisphere spring of 2023.
  7. El Niño Impact: The report suggests that the El Niño event is likely to further intensify the heat in 2024, as El Niño typically has the most significant impact on global temperatures after reaching its peak.

Reasons of high temperatures:

  • Global Warming and Climate Change: The overall rise in temperatures globally due to climate change is a significant factor. Over the last century, India has witnessed a warming trend, with an approximate 0.6°C temperature increase, as per the India Meteorological Department (IMD).
  • Local Weather Conditions: Specific weather conditions, including clear skies, low humidity, and minimal wind, contribute to temperature escalation. For instance, clear skies allow maximum solar radiation to reach the Earth's surface, leading to heightened heating
  • Urbanization and Urban Heat Island Effect: Urbanization and the prevalence of concrete structures in cities contribute to the urban heat island effect. The use of materials like concrete and asphalt absorbs and retains heat, leading to elevated temperatures. Delhi's urban heat island is an example of this phenomenon
  • Deforestation and Land-Use Changes: Changes in land use, particularly deforestation, impact local climate patterns and reduce natural cooling mechanisms. For instance, deforestation reduces the presence of trees and vegetation that provide shade and evaporative cooling, resulting in increased surface temperatures.
  • Regional Weather Patterns: The influence of regional weather patterns, such as delayed or absent monsoon rains, contributes to prolonged dry spells and the occurrence of heatwave conditions. In instances of weak or delayed monsoons, reduced moisture availability leads to high temperature conditions.
  • Geographic Factors: Geographic elements, including the presence of heat-trapping features like mountains or deserts, amplify temperatures in specific regions. For example, geographical features such as mountains can create rain shadow regions, blocking moisture and resulting in arid conditions and higher temperatures.

Impacts:

  1. Health Impacts: Heat waves contribute to increased mortality and heat-related illnesses, particularly affecting vulnerable populations like the elderly and outdoor workers.  For instance, a study from the Indian Meteorological Department revealed that heat waves caused around 2,500 deaths in India in 2015.
  2. Agricultural Consequences: Heat waves resulting from high temperatures result in significant crop damage, leading to reduced agricultural productivity and economic losses for farmers
  3. Water Scarcity: Increased water evaporation intensifies water demand for irrigation and domestic use, exacerbating water scarcity issues in regions already facing water stress.
  4. Infrastructure Damage: Extreme temperatures can cause materials to expand, resulting in damage to roads, bridges, and buildings. Railway tracks may buckle under intense heat, disrupting transportation systems. In 2015, a heat wave caused widespread power outages in India, impacting millions.
  5. Ecosystem Disruptions: High temperatures disrupt ecosystems by causing habitat loss, altering plant and animal behavior, and elevating the risk of wildfires. These disturbances have long-term implications for biodiversity and ecological balance.
  6. Social and Economic Disruptions: Heat waves lead to social disruptions, prompting migration from rural to urban areas for relief from extreme heat. This migration strains urban Resources and services. Additionally, economic losses from heat-related damages and decreased productivity affect various sectors of the economy.

Measures for Climate Change Mitigation:

  1. Transition to Renewable Energy:
    • Encourage the adoption of renewable energy Sources like solar, wind, and hydropower to decrease dependence on fossil fuels
    • Promote research and development initiatives aimed at creating efficient and clean energy production technologies
  2. Forest Conservation and Reforestation:
    • Implement sustainable forest management practices and support reforestation projects to enhance carbon sequestration
  3. Adoption of Sustainable Agriculture:
    • Promote climate-resilient farming methods, agroforestry, and effective water management techniques
    • Advocate for organic farming and reduce reliance on synthetic fertilizers and pesticides
  4. International Cooperation:- Strengthen global collaboration and agreements, such as the Paris Agreement, to reduce greenhouse gas emissions and advance sustainable development.

Climate change presents significant challenges to ecosystems and human societies. By comprehending its causes and  consequences and implementing impactful mitigation measures, we can work towards protecting the environment, fostering sustainable development, and ensuring a resilient future for future generations.

Floods and a ‘preventive measure’ that needs review

stylish lining

Context: The article underscores the enduring consequences of choices made post-Cyclone Michuang in Chennai, particularly concerning electricity disruptions. The core concept emphasizes the importance of accountability in decision-making during crises, underscoring the delicate equilibrium between safety precautions and potential risks for vulnerable groups, notably the elderly. Moving forward entails  

Evident and Noticeable Outcomes: The decisions taken in the aftermath of Cyclone Michuang resulted in immediate and observable consequences, such as the untimely release of reservoir water during the 2015 floods, leading to tragic consequences due to insufficient warning.

Hidden and Subtle Outcomes: Some outcomes were less conspicuous, like the prolonged power outage following the cyclone, posing risks to the elderly and compromising safety within households. This underscores the importance of a well-balanced approach.

Responsibility for Decisions: Decision-makers should be held responsible for their actions during a crisis, acknowledging the dynamic nature of decision-making and its potential impact on public safety and welfare.

Challenges of Power Interruptions During Cyclones

Reasoning Behind Power Interruptions: The justification for halting electricity supply as a safety measure during cyclones appears sound. However, the unintended repercussions, such as safety hazards in unlit homes and communities, necessitate careful examination. Concerns About Specific Demographics: Vulnerable groups, particularly the elderly living independently, encounter heightened risks during extensive power disruptions. This underscores the need to assess decisions within a broader societal context Balancing Act in Decision-Making: Decision-makers grapple with the task of harmonizing safety protocols with the potential adverse outcomes of prolonged power interruptions. This demands a nuanced and continuously adaptable decision-making approach.

Improving Decision-Making Processes

Emotional and Psychological Complexities: Decision-making amid crises poses emotional and psychological complexities, demanding a thoughtful evaluation of potential life-saving measures and their unintended consequences.

Rationale and Record-Keeping: Decision-makers need to provide real-time justifications and document their actions for effective reviews. Premature restoration or unjustifiable prolongation of power cuts both pose substantial risks. Shared Responsibility and Accountability: In a democratic setting, decision-makers should embrace accountability, preventing unchecked authority. Adopting a hierarchical model, regular evaluations, and involving multiple individuals can enhance decision-making processes and accountability.

Recommendations for the Future:

  • Implementing a structured hierarchy with graduated levels of responsibility.
  • Engaging multiple individuals in significant decision-making processes.
  • Regular assessments conducted by an oversight team to scrutinize and rectify questionable decisions.
  • Assigning accountability for sub-optimal choices.

 

PSLV-C58 XPoSat mission

stylish lining

Context:  The Indian Space Research Organisation (ISRO) kicked off the new year with the launch of the PSLV-C58 X-ray Polarimeter Satellite (XPoSat) on January 1, 2024.

  1. On January 1, 2024, the PSLV-C58 mission achieved success, placing the primary satellite, XPoSat, into the intended orbit of 650 km with a 6-degree inclination
  2. The successful launch of XPoSat makes India the second nation globally to send an observatory for studying astronomical Sources, including black holes and neutron stars
  3. PSLV Orbital Experimental Module-3 (POEM-3): During the mission, the POEM-3 experiment was executed to meet the objective of deploying 10 other payloads
  4. PS4 Stage Operations: After injecting XPoSat into a 650 km, 6-degree orbit, the PS4 stage was lowered to a 350 km, ~9.6-degree orbit by restarting it twice. The PS4 stage serves as a 3-axis stabilized orbital platform for conducting experiments with space-qualify systems
  5. Launch of 10 Payloads: The PSLV also launched 10 payloads developed by start-ups, educational institutions, and ISRO centers, including Radiation Shielding Experimental Module (RSEM), Women Engineered Satellite (WESAT), BeliefSat-0 Amateur radio satellite, Green Impulse TrAnsmitter (GITA), LEAP-TD, RUDRA 0.3 HPGP, ARKA-200, Dust Experiment (DEX), ISRO Fuel cell Power System (FCPS), and Si-based High Energy cell

XPoSat

  • XPoSat, or X-ray Polarimeter Satellite, is India's pioneering mission in polarimetry designed to study astronomical Sources in extreme conditions.
  • It represents the world's second X-ray polarimetry mission after NASA's Imaging X-ray Polarimetry Explorer (IXPE) launched in 2021.
  • A collaborative effort between ISRO and the Raman Research Institute (RRI) in Bengaluru, Karnataka.

Scientific Payloads:

  • XPoSat carries two primary scientific payloads: Polarimeter Instrument in X-rays (POLIX) and X-ray Spectroscopy and Timing (SPECT).
  • POLIX measures polarimetry parameters like degree and angle of polarization in the medium X-ray energy range (8-30 keV) from astronomical Sources.
  • SPECT provides timing and spectroscopic information within the energy range of 0.8-15 keV for X-ray photons.

Significance in Astronomical Understanding:

  • Polarimetry measurements serve as a valuable diagnostic tool for understanding emission processes from various astronomical Sources.
  • Complex emission mechanisms from Sources like black holes, neutron stars, active galactic nuclei, and pulsar wind nebulae pose challenges to current understanding.
  • Combining polarimetric observations with spectroscopic and timing data aims to overcome limitations in comprehending these astronomical emission processes.

 

Domestic Systemically Important Banks (D-SIBs)

stylish lining

Context: Recently, the Reserve Bank of India (RBI) issued its list of Domestic Systemically Important Banks (D-SIBs).

News:

  • In the recent update by the Reserve Bank of India (RBI), both the State Bank of India (SBI) and HDFC Bank have been reclassified to higher tiers, while ICICI Bank maintains its existing categorization from the previous year
  • The revised classifications place SBI in buckets 3 to 4 and HDFC Bank in buckets 1 to 2.
  • This adjustment is attributed to the recognition of HDFC Bank's heightened systemic significance following the merger of the former HDFC Limited into HDFC Bank on July 1, 2023.
  • The update influences the application of an additional common equity requirement, determined by the assigned bucket for a Domestic Systemically Important Bank (D-SIB). Common Equity Tier 1 (CET1), constituting part of Tier 1 capital, primarily consists of common stock held by a bank or other financial institution.
  • Banks in bucket 1 must maintain a 0.15% incremental tier-I capital from April 2018.
  • Banks in bucket 3 have to maintain an additional 0.45%. 

About Domestic Systemically Important Bank (D-SIB):

  • The Reserve Bank introduced the Framework for managing Domestic Systemically Important Banks (D-SIBs) in 2014.
  • According to the D-SIB framework, the Reserve Bank is obligated to reveal the names of designated D-SIBs annually, beginning in 2015.
  • The designation involves placing these banks into specific buckets, determined by their Systemic Importance Scores (SISs).
  • Depending on the assigned bucket, an extra common equity requirement must be imposed on a D-SIB.

Features:

  • The designation of Domestic Systemically Important Banks (D-SIBs) implies that these banks are deemed 'too big to fail.'
  • In the event of a bank failure, there would be significant disruptions to crucial services provided by the bank to both the banking system and the broader economy.
  • The 'too big to fail' designation also signifies an expectation that the government will provide support to these banks in times of financial distress.
  • The Reserve Bank of India (RBI) classifies these banks into five buckets based on their order of importance
  • Factors contributing to the systemic importance of these banks include their size, cross-jurisdictional activities, complexity, and a lack of substitutes and interconnections.
  • A quantitative criterion for inclusion in this group is that banks with assets exceeding 2% of the Gross Domestic Product (GDP) are considered part of the D-SIBs.
  • Due to their economic and national significance, these banks are required to maintain a higher proportion of risk-weighted assets as tier-I equity, resulting in enhanced capital requirements.

 

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