AP Photo/Susan Walsh

Under the revised proposed SIFI regulation, a non-bank financial services company such as an insurer would be scrutinized as possibly “systemically significant” if it has at least $50 billion in total consolidated assets and meets or exceeds any one of the following thresholds:

  • $30 billion in gross notional credit default swaps outstanding for which the non-bank financial company is the reference entity;
  • $3.5 billion in derivative liabilities;
  • $20 billion of outstanding loans borrowed and bonds issued;
  • 15 to 1 leverage ratio, as measured by total consolidated assets (excluding separate accounts) to total equity;
  • 10 percent ratio of short-term debt (having a remaining maturity of less than 12 months) to total consolidated assets

If an institution met this threshold criteria, it would then be subject to phases two and three of the process, according to a fact sheet released by the Treasury Department to members of Congress, industry lobbyists and congressional staff, and obtained by The National Underwriter.