Resolution Should Also Protect Systemically
Those banks to be categorized as systemically
important will have to meet certain criteria concerning their size, connections, relevance and substitutability, and complexity," NBRM officials explain.
Lew was commenting on the decision of Judge Rosemary Collyer's decision throwing out the designation of MetLife as a systemically
important financial institution (SIFI) March 30 because it was arbitrary and capricious.
The regulators continue to assess plans for four foreign banks labeled "systemically
important," Barclays PLC, Credit Suisse Group, Deutsche Bank AG, and UBS.
The bill seeks to establish a process to designate bank holding companies (BHCs) as systemically
important by replacing the existing framework, in which all BHCs with more than $50 billion in total consolidated assets are automatically deemed systemically
important, with a framework that requires the Federal Reserve as well as the Financial Stability Oversight Council to evaluate BHCs with more than $50 billion and less than $500 billion in total consolidated assets, as indexed for GDP growth, for systemic designation based on size, interconnectedness, substitutability, cross-border activity and complexity.
In a statement, New York-based MetLife said it is ''disappointed'' in the decision and has given the regulators evidence showing it is not systemically
important as defined by law.
Allianz is one of nine global insurers that have been listed as "systemically
relevant" by international regulators for posing a potential threat to the financial system should they fail.
THE Reserve Bank of India ( RBI) plans to introduce increased capital requirements for banks classified as systemically
important or too big to fail by 2016 and also bring them under greater regulatory oversight.
The sheer complexity of their operations, and their penchant for using large amounts of debt to fund their business, make them 'systemically
important' and necessitate taxpayer bailouts when they get into trouble.
It is only there for, and can only be expected by the systemically
EU Economic and Monetary Affairs Commissioner Olli Rehn warned on Sunday against a Cypriot exit from the eurozone and said all countries in the single currency bloc were systemically
AIG is expected to be designated as systemically
important by the Financial Stability Oversight Council later this week.