How To Guide For: Understanding What A Systemically Important Financial Institution Means

A Systemically Important Financial Institution (SIFI) is a bank, insurance company, or other financial institution whose failure might trigger a financial crisis. As the financial crisis of 2007-2008 unfolded, the international community has moved to protect the global financial system through preventing the failure of SIFIs, or, if one does fail, limiting the adverse effects of its failure. In November 2011, the Financial Stability Board published a list of global systemically important financial institutions--2016 list of Global Systemically Important Banks. Each country's internal financial regulators make their own determination of what is a Systemically Important Financial Institution. Once those regulators make that determination, they may set specific laws, regulations and rules that would apply to those entities. Systemically Important Financial Institutions operate at the top level as a holding company made up of numerous subsidiaries. To learn more about Systemically Important Financial Institutions click the pictures below to read the articles.