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18 vladislav Pavlat

Conclusions

During the last 2-3 years, the approach to identifications of so-called sys-temically important big financial entities changes: at present, they are charac-terized by specific features, namely, size, interconnectedness, substitutability, global activity and complexity. Methods of measuring these specific features were developed to be able to regulate/supervise the systemically important financial institutions both on the national and intemational levels.

There is a wide-spread opinion that the behaviour of many big financial institutions in the critical years 2007-2009 was one of the important factors which lead to the financial crisis, and therefore, the SIFIs should be resolved. However, for practical reasons, this solution is unrealistic. A generał resolution of SIFIs probably would cause high losses to the financial sector and the national eco-nomy of any country.

At present, it is generally recognized that SIFIs can play a different role, according to their different prevailing features due to their different activities, and according to the existing phase of economic cycle. SIFIs play a dual role in the economy: if they are robust, they contribute to financial stability, if they are vulnerable, they contribute to financial distress. Unfortunately, recognized feasible measurement methods of „robustness" and „vulnerability”, in spite of recent research results, are still lacking.

Therefore, SIFIs regulation/supervision is a very sophisticated task; it has to be different according to the different needs of different countries. Some countries are sceptical about the possibility of an efficient intemational SIFIs regulation/supervision: according to their view, national regulation/supervision should be preferred. At the intemational level, the present efforts to find the most suitable regulatory measures are at the verv beginning. For the next futurę, an efficient intemational coordination is the most desirable goal, and - in my opinion - maximum what can be achieved.

References

Achieving Effective Supen ision: An Industry Perspective. Institute of Intemational Fi-nance, July, 2011.

Annual Report. 1 April 2010-31 March 2011. Bank for Intemational Settlements. Basel, 26 June 2011.

Brunnermeier M., Crocket M.. Goodhart Ch, Persaud A.D., Shin H.: Fundamental Prin-ciples of Financial Regulation, 2009. Geneva Reports on the World Economy.

Drehman M., Tarashev N.: Measuring the Systemie Importance of Interconnected Banks. BIS Working Papers, No. 342, March 2011.

Overall Systemically Important Financial Institutions (discussed at g20). 12.5.2011.