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Dodd-Frank was established to improve financial regulation and oversight following the financial crisis. One of its critical elements is the designation of Systemically Important Financial Institutions (SIFIs), which imposes stricter regulations on large banks believed to pose a risk to the financial system if they fail. As it stands, a financial institution must hold over $50 billion in assets to be classified as a SIFI, incurring higher regulatory expenses and various restrictions.
Proposed Changes to SIFI Designation