Systemic risk: Difference between revisions
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1. ''Market supervision and regulation.'' | |||
The risk that the failure of one participant in a transfer system, or in financial markets generally, to meet its required obligations will cause other participants or financial institutions to be unable to meet their obligations (including settlement obligations in a transfer system) when due. | The risk that the failure of one participant in a transfer system, or in financial markets generally, to meet its required obligations will cause other participants or financial institutions to be unable to meet their obligations (including settlement obligations in a transfer system) when due. | ||
Such a failure may cause significant liquidity or credit problems and, as a result, might threaten the stability of financial markets. | Such a failure may cause significant liquidity or credit problems and, as a result, might threaten the stability both of financial markets and of the wider economy. | ||
These secondary adverse consequences are sometimes known as a 'domino effect' or 'contagion'. | |||
2. | |||
By extension, and more loosely, all risks accepted by participating in a given market, including the risk of contagion. | |||
== See also == | == See also == | ||
* [[Contagion]] | |||
* [[Conduct risk]] | |||
* [[European Systemic Risk Board]] | |||
* [[Financial Policy Committee]] | |||
* [[Financial stability]] | |||
* [[Gridlock]] | * [[Gridlock]] | ||
* [[Macroprudential]] | |||
* [[Regulation]] | |||
* [[Risk]] | |||
* [[Risk management]] | |||
* [[Supervision]] | |||
* [[Systematic risk]] | * [[Systematic risk]] | ||
* [[Systemically Important Bank]] | |||
* [[Systemically Important Financial Institution ]] | |||
*[[Systemically Important Payment System]] (SIPS) | |||
* [[Systemic Risk Buffer]] | |||
* [[Transfer]] | |||
* [[Transfer system]] | * [[Transfer system]] | ||
* [[Unwinding]] | * [[Unwinding]] | ||
[[Category:Manage_risks]] | [[Category:Manage_risks]] | ||
Latest revision as of 18:22, 13 March 2023
1. Market supervision and regulation.
The risk that the failure of one participant in a transfer system, or in financial markets generally, to meet its required obligations will cause other participants or financial institutions to be unable to meet their obligations (including settlement obligations in a transfer system) when due.
Such a failure may cause significant liquidity or credit problems and, as a result, might threaten the stability both of financial markets and of the wider economy.
These secondary adverse consequences are sometimes known as a 'domino effect' or 'contagion'.
2.
By extension, and more loosely, all risks accepted by participating in a given market, including the risk of contagion.
See also
- Contagion
- Conduct risk
- European Systemic Risk Board
- Financial Policy Committee
- Financial stability
- Gridlock
- Macroprudential
- Regulation
- Risk
- Risk management
- Supervision
- Systematic risk
- Systemically Important Bank
- Systemically Important Financial Institution
- Systemically Important Payment System (SIPS)
- Systemic Risk Buffer
- Transfer
- Transfer system
- Unwinding
