Since 2004 there is a framework in place to closely monitor certain large financial conglomerates aimed at reducing the probability of failure of these institutions. considered to be systemically important in view of concerns relating to the moral hazard associated with the “Too-Big-To-Fail” proposition and the contagion or reputation effects on account of the “holding out” phenomenon. 38.
The current practices being followed in supervision of these conglomerates include offsite surveillance through quarterly Returns, regular interactions with the CEOs of the Parent  5  Singh, Manmohan, Aitken, James: The (sizable) Role of Rehypothecation in the Shadow Banking System, IMF Working Paper, July 2010.