SIFI designation

SIFI stands for Systemically Important Financial Institution. It refers to a bank or financial institution whose failure could significantly impact the broader financial system and economy. Due to their size, interconnectedness, and importance, SIFIs are subject to stricter regulations to ensure they remain stable and can withstand financial shocks. The designation helps regulators monitor these institutions closely to prevent a collapse that could lead to widespread financial crises, protecting consumers and the economy as a whole.