Systemic risk: Difference between revisions
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imported>Doug Williamson (Link with Macroprudential page.) |
imported>Doug Williamson (Link with Conduct risk page.) |
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== See also == | == See also == | ||
* [[Conduct risk]] | |||
* [[European Systemic Risk Board]] | * [[European Systemic Risk Board]] | ||
* [[Financial Policy Committee]] | * [[Financial Policy Committee]] | ||
Revision as of 10:41, 1 October 2017
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'.
