Systemically Important Bank: Difference between revisions
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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. | ||
For this reason, SIBs are subject to more stringent regulation and capital adequacy requirements than other institutions. | |||
== See also == | == See also == | ||
* [[Bank]] | |||
* [[BSBY]] | * [[BSBY]] | ||
* [[Capital adequacy]] | |||
* [[Financial institution]] | |||
* [[Global SIFI]] | * [[Global SIFI]] | ||
* [[Regulation]] | |||
* [[Systemic risk]] | * [[Systemic risk]] | ||
* [[Systemically Important Financial Institution]] (SIFI) | * [[Systemically Important Financial Institution]] (SIFI) | ||
Revision as of 16:26, 17 March 2022
(SIB).
A bank 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.
For this reason, SIBs are subject to more stringent regulation and capital adequacy requirements than other institutions.
