SIFI

Systemically important financial institution. The BCBS and the FSB have developed a framework for proposed regulation of SIFIs, focusing initially on G-SIBs and G-SIFIs. Under the DFA, in order to seek to eliminate the too-big-to-fail problem, institutions that are either de facto categorized as SIFIs or designated as such as a result of the procedures outlined in the DFA are subject to more onerous requirements and more rigorous prudential standards in order to mitigate the risk of failure of a SIFI. Post-DFA, it has become increasingly important not to be viewed as important.