How to Define a Systemically Important Financial Institution (SIFI) – A New Perspective

8 Pages Posted: 8 Oct 2016 Last revised: 11 Jan 2018

See all articles by Volker Brühl

Volker Brühl

Center for Financial Studies (CFS)

Date Written: September 30, 2016

Abstract

The recent financial crisis has demonstrated that a failure of Systemically Important Financial Institutions (SIFIs) could seriously damage the stability of the financial system. A precise and consistent definition of a SIFI is pivotal to ensure efficient and effective regulation of the global financial sector. This paper proposes a threefold test logic that allows to classify Financial Institutions as systemically important across the various industry segments.

JEL Classification: G10, G20

Suggested Citation

Brühl, Volker, How to Define a Systemically Important Financial Institution (SIFI) – A New Perspective (September 30, 2016). CFS Working Paper, No. 538. Available at SSRN: https://ssrn.com/abstract=2848912 or http://dx.doi.org/10.2139/ssrn.2848912

Volker Brühl (Contact Author)

Center for Financial Studies (CFS) ( email )

Grüneburgplatz 1
Frankfurt am Main, 60323
Germany

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