SIFI: Whether In or Out, Start Preparing Now
As regulators put a broader spotlight on measures designed to help avoid and mitigate risk to the global financial system from the failure of a systemically important financial institution (SIFI), companies need to be preparing for the coming change. They need to know whether they are going to be SIFI-eligible, and, if so, or even if they are simply near-SIFI status, they need to pay attention as regulators begin to clarify how they will implement the Dodd-Frank Act. How will they measure up in terms of infrastructure and capital? Can they meet the need for the living wills regime, credit-exposure reports, and stress testing requirements? Do they have sufficient capital buffers to meet the emergent SIFI standards? None of these are trivial questions, nor can they be addressed and answered quickly.
This whitepaper defines the purview of SIFI and examines the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act’s explicit mandate to protect the U.S. financial system from systemic risk.
Read the attachment to learn more.