Systemically Important Financial INstitutions Detector (SIFIND)

Reduction and management of the systemic risk of financial institutions is one of the most important regulatory topics. This has an enormous socio-economic impact: a crisis of the whole financial system can trigger a large and prolonged real economic crisis, as shown by the 2007-2008 crisis. Therefore, the proposed research aims at detecting which institutions, called Systemically Important Financial Institutions (SIFIs), can have a systemic relevance and at assessing the potential systemic losses due to their default. Moreover, this methodology will determine which targeted interventions by regulators are most effective in avoiding the spread of financial distress among banks.