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- Assessing System Risk
- ‘Know Your Customer’ Rules Must Evolve
- Technology, New Players, Outpace Regulators
- Mobile Banking Security Requires a New Approach
- Banks’ Experience to Shape Mobile Regulation
- Balancing Mobile Security and Innovation
- Will Mobile Regulatory Regimes Help or Hurt Banks?
- Relationships with Regulators Could Help in Mobile Rollouts
- Consumers Do Not Fully Trust Mobile Banking
- Testing for the Weakest Links
- Expect Mobile Security Attacks to Mimic, Then Surpass, PC Attacks
- Industry Is Still Setting Ground Rules for Mobile Security
- Invest Adequately in Security, Disclose When Things Go Wrong
- Banking: Future Growth Models
- Customer Focused Products
- Emerging Markets
- Innovation Revisited
- IT Investments
- Lessons Learned from the Financial Crisis
- Managing Regulations
- Mobile Banking
- Mobile Banking: Financial Services Meet the Electronic Wallet
- Rebuilding Trust
- Regulatory Arbitrage
- Retail Banking
- Risk Management
- Scenario Planning
- Video 1: Banking: The Road Ahead
- Video 2: Regulatory and Growth Challenges Face Global Banks
- Video 3: Putting Together the Global Banking Puzzle
- Video 4: Banking Takes a New Look at Innovation
- Video 5: SIFIs Rules Are Recasting Global Banking
- Video 6: The Future of Mobile Banking
- Video 7: Global Banking 2020: Using Scenario Planning to Guide Strategies
- Video 8: Mobile Banking and Big Data – Meeting the Promise
- Video 9: Solving Mobile Banking's Global Security Concerns
- G30 report: a call to action on bank governance Global banking outlook 2012-2013 Webcast - Bank risk governance: progress and challenges Global banks adapt to uncertain economics and regulations Lessons from change: The challenging banking environment Video report: Key findings from CFO report on capital management More articles and resources from Ernst & Young on Banking and Capital Markets
(Part 1 of 14) 2:14
A SIFI (Systemically Important Financial Institution) is a financial institution considered sufficiently large, complex and interconnected that – should it experience serious financial issues – could cause significant damage to other financial institutions and the global financial system.
1:42 (Part 2 of 14)
Central bankers, regulators and other senior policy makers decide which institutions receive a SIFI designation. In the U.S., approximately 130 institutions have received SIFI designation. Some 28 global banks have been tentatively identified as GSIBs – Global Systemically Important Banks.
4:54 (Part 3 of 14)
SIFIs will be subject to more rigorous financial regulations, including stricter capital controls, intended to avert financial defaults and systemic failures. Some banks on the borderline of SIFI status – about $50 billion in assets – may opt to hold their assets below the line in order to avoid the extra regulation that comes with a SIFI designation. Many of the intended regulatory mechanisms are not yet clearly defined.
2:27 (Part 4 of 14)
Given that regulatory guidance is being developed by global regulators and policy makers to ensure the stability of global financial institutions but ultimately will be implemented at the national level, there are concerns about these standards being realized in a consistent way from one jurisdiction to another. “Banks grow globally and they die on a national basis,” says Ernst & Young’s Bill Schlich. “When they die is when … the rules that each different country imposes become very important.”
4:35 (Part 6 of 14)
In addition to stricter capital requirements, SIFIs will have to manage risk-weighted assets. The dilemma for regulators is how much discretion to allow banks in assigning different levels of risk to their assets. There also is some tension between banks and different geographies, such as the U.S. and Europe, in terms of whether they are risk-weighting their assets in the same way.
4:52 (Part 8 of 14)
Many observers see the SIFI designation process as an improvement over how risks were governed in the past. Ideally, a fully functioning SIFI regime would provide a seamless regulatory process across borders. But variations in how different jurisdictions might handle an actual crisis mean that much uncertainty remains.
51:28 (Full Video)
The global financial crash has set off a raft of new financial regulation at the local and international levels. One particularly notable development is the move to identify the largest global banks – those capable of causing the most damage to the global financial system should things go wrong – and then to tailor risk-reducing regulations for them. The new rules for these Systemically Important Financial Institutions – or SIFIs — set more stringent capital and liquidity requirements that are causing the largest global banks to restructure their businesses in important ways.