How to Define a Systemically Important Financial Institution (SIFI) – A New Perspective
8 Pages Posted: 8 Oct 2016 Last revised: 11 Jan 2018
Date Written: September 30, 2016
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
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