Proximity-based system and method for reducing gain imbalance in a bayer pattern and digital camera employing the same

abA proximity-based system for, and method of, reducing Gr-Gb gain imbalance and a digital camera incorporating the system or the method. In one embodiment, the system includes: (1) a sensor configured to provide a input Bayer pattern array containing amplitudes corresponding to Gr and Gb cells and (2) a processor coupled to the sensor and configured to (2) compute for at least some of the Gr and Gb cells: closeness measures for pluralities of adjacent, same-type cells, weights for pluralities of adjacent, opposite-type cells based on the closeness measures and weighted averages of the pluralities of the adjacent, opposite-type cells based on the weights and (2) use the weighted averages to form an output Bayer pattern in which the Gr-Gb gain imbalance is reduced.