What Does SIFI Status Mean for Banks?

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.

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