Systemically Important Financial Institution: Difference between revisions
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imported>Doug Williamson (Add link to Too Big To Fail.) |
imported>John Grout (To make clear extends to non-banks) |
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cause significant disruption to the wider financial system and to economic activity in its (main) country or region of operation. | cause significant disruption to the wider financial system and to economic activity in its (main) country or region of operation. | ||
The idea wasw developed for banks considered too big to fail. It has been exended to other types of institutions and the Financial Stability Oversight Council in the US, for example, has provisionally identified certain insurance comapnies and investors as potential US SIFIs. | |||
Revision as of 08:44, 9 August 2013
(SIFI.)
A financial firm whose disorderly failure would because of its:
(i) Size,
(ii) Complexity, and
(iii) Systemic interconnectedness
cause significant disruption to the wider financial system and to economic activity in its (main) country or region of operation.
The idea wasw developed for banks considered too big to fail. It has been exended to other types of institutions and the Financial Stability Oversight Council in the US, for example, has provisionally identified certain insurance comapnies and investors as potential US SIFIs.
