Systemic Importance
/ˌsɪs.təˈmɪk ɪmˈpɔːr.təns/
Definitions
- (n.) The characteristic of an institution or entity whose failure could trigger widespread disruption to the financial system or economy, warranting special regulatory attention.
The bank was designated as having systemic importance due to its critical role in the national economy.
Forms
- systemic importance
Related terms
See also
Commentary
The term is primarily used in financial and regulatory contexts to identify entities requiring enhanced oversight; clarity in drafting involves specifying the scope and criteria for systemic importance to avoid ambiguity.
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.