Systemically Important Financial Institutions (SIFIs), by simply being so labeled, have been forced into the financial services and public spotlight. The debates regarding SIFI status range from the likelihood of lower costs of capital, because of being identified as too big to fail, to whether SIFIs should be forced to make divestments to reduce their size and complexity to the point they are no longer systemically important. Within that particular debate the benefits to the sector of economies
systemically (2)
The new category of domestic systemically important banks will increase the data management and disclosure burden on qualifying institutions, at a time when many are already feeling the strain.
Banks that escaped classification as G-SIFIs in 2011 may have breathed a sigh of relief at the time, but for many, that relief will have been short-lived. In October last year, the Basel Committee on Banking Supervision (BCBS) set out its proposed framework for an additional category of systemically import
