Systemically Important Financial Institutions

Systemically Important Financial Institutions

Glossary
Banking

Systemically Important Financial Institutions

Systemically important financial institutions are those banks, investment banks, insurance companies and other financial institutions whose collapse could pose a huge threat to the global economic landscape. These institutions are typically referred to as the ones that are “too big to fail”. As a result they face an extra level of regulatory scrutiny and must ensure that adequate capital resources are above minimum regulatory requirements.

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