"The recent financial crisis has demonstrated that a failure of systemically important financial institutions (SIFIs) could seriously damage the stability of the financial system. A precise and consistent definition of a SIFI is pivotal to ensure efficient and effective regulation of the global financial sector. This paper proposes a threefold test that indicates which financial institutions are systemically important across the various industry segments.

This paper is based on the award-winning contribution to the crowd-sourced innovation contest organised by the Center for Finance and Policy at the Massachusetts Institute of Technology and the Harvard Crowd Innovation Lab. The contest was launched at the end of 2015 to generate new proposals to specify sets of criteria that regulators should apply to designate a financial institution as systemically important."

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