Systemic risk: Difference between revisions
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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 of financial markets. | ||
== See also == | == See also == | ||
Revision as of 13:04, 15 August 2013
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.
