SIFI Meaning and
Definition
-
SIFI stands for “Systemically Important Financial Institution.” It refers to a term coined after the 2008 global financial crisis to identify and regulate financial institutions whose failure could significantly disrupt the overall stability of the financial system and pose systemic risks to the economy.
A SIFI designation is typically assigned by financial regulatory authorities, such as the central bank or a regulatory agency, based on certain criteria and risk assessments. The criteria often include the institution's size, interconnectedness, complexity, and importance to the functioning of the financial system. SIFIs are usually large banks, insurance companies, or other financial entities whose failure could lead to significant contagion effects on other financial institutions and the broader economy.
The purpose of identifying and designating SIFIs is to subject them to enhanced prudential regulations and oversight, including stricter capital requirements, stress-testing, increased liquidity standards, and more stringent risk management practices. This regulatory framework aims to reduce the likelihood of SIFIs collapsing and minimize the potential systemic risks they pose, thereby enhancing the overall stability and resilience of the financial system.
By subjecting SIFIs to tighter regulation, authorities aim to prevent a repeat of the 2008 crisis and protect the economy from severe financial disruptions caused by the failure of these systemically important institutions.
Common Misspellings for SIFI
- sifj
- sif9
- sif8
- zsifi
- xsifi
- sxifi
- dsifi
- sdifi
- esifi
- sjifi
- sijfi
- skifi
- sikfi
- s9ifi
- si9fi
- s8ifi
- si8fi
- sivfi
- sifvi
- sifui
- sifiu
- sifji
- sifki
- sifik
- sifoi
- sif9i
- sifi9
- sif8i
- sifi8
- sifii
- s ifi
- sif i
Infographic
Add the infographic to your website:
