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What are SIFIs? How should they be regulated?

What are SIFIs? How should they be regulated?

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SIFIs are systematically important financial institutions that were established after the financial crisis. The main reason for their establishment was to check the financial stability of the country. Any failure of these institutions can cause a financial crisis.

They are regulated by the international monetary fund or the central bank of a country. In the USA, the federal reserve bank regulates the SIFI. Some global financial institutions are termed as some of the important institutions that are well protected.

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