Norðoya Sparikassi ‘not systematically important’

The Norðoya Sparikassi management is delighted that the bank is not listed as a so-called SIFI because the demands on SIFI banks will be increasing soon.

A systemically important financial institution (SIFI) is a bank, insurance company or other financial institution whose failure might trigger a financial crisis.

According to the country’s two major banks, BankNordik og Betri, both of which are listed as SIFI banks, the upcoming demands on SIFI banks can have a negative effect on private and business customers.

The Danish Ministry of Trade decides which institutions are listed as SIFI, but Faroese authorities do have a say in the matter, says finance minister Kristina Háfoss.

Translated by prosa.fo