Importance Considering crisis phenomena in global economy, it gets even more important to regulate operations of global and systemically important financial institutions. National regulators follow guidelines of international organizations in order to address risks of local units of 'too big to fail' institutions. The recommendations guide the practice of mitigating risks of systemically important institutions. Objectives The objective of the research is to analyze trends in developing the measures for regulating financial institutions marked as systemically important or 'too big to fail'. I select some financial institutions for the research if their operations are of such a large scale that may considerably influence the global financial stability, and regulation mechanisms and tools, which are devised for them, become the best-in-class examples for the national regulators. Methods The research analyzes standards and recommendations of international financial organizations, which formulate mechanisms and tools to globally govern various types of financial institutions and global banks, and insurance companies. Results I determine components of the mechanism for tackling insolvency of financial institutions, stakeholders, possible strategies, and identify the key role of the national regulators in managing insolvency of systemically important financial institutions. The article indicates new trends in setting up new requirements to capital of systemically important banks and insurance companies. Conclusions and Relevance I conclude that a combination of insolvency regulation mechanism, intensified oversight and increased capital base of systemically important financial institutions generates synergy for mitigating inherent risk at the global level.
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