# System relevance, relevance to the system

- Canonical URL: https://www.gerhardmerk.de/system-relevance-relevance-to-the-system-2
- Post ID: 591845
- Modified: 2023-07-25T21:13:02+00:00
- Language: en

## Definition

Unless otherwise defined, the term used to describe the extent to which the failure of a single institution has a lasting impact on the - national, global - financial system as a whole. - To date, there is no clear definition of the characteristics of the term "systemic importance" and "systemically important financial institution" (SIFI). This is because, in addition to - the size of a bank, its systemic importance is also determined above all by - its interconnectedness in the national or international financial economy, - the potential substitutability of this institution, and - the general state of the markets. - See bank, systemic, banking supervision, European, G-Sifi, big bank, Lehman bankruptcy, Sifi oligopoly, systemic risk. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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