Systemically Important Financial Institution
/ˌsɪstəmɪkli ɪmˈpɔːrtənt faɪˈnænʃəl ɪnstɪˈtjuːʃən/
Definitions
- (n.) A financial institution whose failure or distress could trigger widespread disruption to the financial system and economy, thus subject to heightened regulatory oversight.
The government designated several banks as systemically important financial institutions to ensure their stability.
Forms
- systemically important financial institution
- systemically important financial institutions
Related terms
See also
Commentary
This term is key in regulatory contexts, often linked to macroprudential policies and crisis prevention measures.
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.