Finance and Financial Management Commons^™

The Importance Of Being Systemically Important Financial Institutions, Paola Bongini, Laura Nieri

Paola Bongini

We investigate whether financial markets reacted to the regulatory changes implied by the publication of the SIFI list and the new rules designed to address the too-big-to-fail problem of systemic banks. Using event study methodology applied to a sample of 70 of the world’s largest banks, we assess whether the stock prices of SIFIs reacted significantly and differently from those of other large banks not deemed to be systemically important, following the release of information regarding: the methodology used to identify SIFIs and their new capital requirements; the disclosure of the first list of 29 SIFIs; the publication of the …