One of the big issues thrown up by the recent crisis is the systemic risk and moral hazard associated with what have come to be called Systemically Important Financial Institutions (SIFIs). The underbelly of the recent crisis was the failure of SIFIs which, because of their size, complexity and interconnectedness, brought enormous disruption to the global financial system.
Among the issues presently engaging the attention of the Financial Stability Board is improving the procedure for orderly resolution of SIFIs in the event of stress. Two considerations are particularly important. First, SIFIs must be able to continue to function at a minimum level even in a period of stress, and second, their resolution should not expose tax payers to loss.