26. Even if we accept that SIFIs should be subject to some additional regulation on top of the base level regulations, there are several issues that need to be addressed in fleshing out the necessary framework. The first issue is of evolving objective criteria for identifying systemically important institutions.
Meanwhile, under slow corporate metabolism and the traditional practice of lifetime employment, if a firm were to go bankrupt and employees lost their jobs, their biggest worry is finding a new job. As a result, employees seek stability of employment over higher wages.