An institution designated as systemically significant, or "crucial, " would be marked as too big to fail.

WSJ: Not Everything Can Be Too Big to Fail

Second, systemically significant institutions would suddenly have an unfair competitive edge that would warp the market.

WSJ: Not Everything Can Be Too Big to Fail

That would be better, they think, than a system based solely on the micromanagement of individual institutions deemed systemically significant.

ECONOMIST: Financial economics

For starters, because the definition of a systemically significant institution is highly dependent on context, it's impossible to identify one in advance.

WSJ: Not Everything Can Be Too Big to Fail

The markets will understand that a loan to a systemically significant institution will carry less risk than a loan to an institution that does not have this status.

WSJ: Not Everything Can Be Too Big to Fail

In fact, in today's fragile markets, almost any financial institution is systemically significant -- if what we mean by the term is that its collapse will stimulate fear about the stability of others.

WSJ: Not Everything Can Be Too Big to Fail

Accordingly, systemically significant institutions will have an easier time raising funds than others, will pay lower rates and grow larger than others, and it will be able to take more risks because of the absence of market discipline.

WSJ: Not Everything Can Be Too Big to Fail

Although the risk from Dubai is not systemically important on a global level, it is significant across the United Arab Emirates and the rest of Gulf Cooperation Council--Saudi Arabia, Bahrain, Kuwait, Oman and Qatar.

FORBES: Doctor Doom