Okuzeka
Finance & Banking vocabulary · Banks & Institutions

Systemically important bank

Meaning in finance & banking, with examples

nounAdvanced term

In finance & banking, systemically important bank means: A bank whose distress could seriously disrupt the wider financial system or economy.

In Turkish: sistemik öneme sahip banka

How it is used

The designation concerns systemic impact, not a promise that the bank cannot fail.

Example sentences

  1. The supervisor assessed the cross-border links of the systemically important bank.

    Interconnected activities help explain its wider importance.

  2. A systemically important bank tested how critical payments would continue in a crisis.

    Failure could affect services used beyond the bank itself.

Common collocations

  • global systemically important bank
  • systemically important bank designation
  • regulatorA public body that makes and enforces the rules for an industry. Banking regulators license banks, set capital rules and inspect banks.
  • stress testAn analysis that checks whether a bank would have enough capital and liquidity to survive a severe but possible shock, such as a deep recession.

More terms: Banks & Institutions

Practise with graded reading

Reading at the right level is the fastest way to make new words stick. Pick free English books by level:

This page explains English vocabulary for learners. It is not financial advice.