Systematically Important Financial Institution
/ˌsɪstəmˈætɪkli ɪmˈpɔːrtnt faɪˈnænʃəl ɪnˈstɪtjuːʃən/
Definitions
- (n.) A financial institution whose failure or distress could trigger significant disruption to the broader financial system due to its size, interconnectedness, or critical functions.
Regulators monitor systematically important financial institutions closely to manage systemic risk.
Forms
- systematically important financial institution
- systematically important financial institutions
Related terms
See also
Commentary
Often abbreviated as SIFI, this term is used primarily in regulatory contexts to designate banks or financial firms subject to heightened oversight.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.