Financial risk and G-SIB: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Add links.)
 
imported>Doug Williamson
(Add link.)
 
Line 1: Line 1:
1. ''Capital asset pricing model.''
Global systemically important bank.


In the Capital asset pricing model, financial risk means the component of total risk resulting from a firm’s capital structure.  
A G-SIB is a large bank whose potential failure would have widespread negative effects in the broader financial system.


The more net debt there is in the capital structure, the greater the financial risk.
For this reason, these banks are subject to more stringent regulation and capital adequacy requirements than other institutions.




2. ''Risk identification.''
UK-headquartered G-SIBs include HSBC, Barclays and Standard Chartered Bank.


The term 'financial risk' is also used more generally to mean the wider risk of uncertain financial outcomes. 


For example, the risks arising from not knowing the future home currency value of a forecast foreign currency receipt, or the uncertainty regarding the size of future interest payments on floating rate borrowings.
==See also==
* [[Capital adequacy]]
* [[Contagion]]
* [[D-SIB]]
* [[G-SIFI]]
* [[HLA]]
* [[R-SIB]]
* [[SIB surcharge]]
* [[Significant institution]]
* [[Systemically Important Financial Institution]]
* [[Too Big To Fail]]


 
[[Category:Accounting,_tax_and_regulation]]
3. ''Adverse financial implications.''
[[Category:The_business_context]]
 
'Financial risk' can also refer to the financial implications arising from all types of risk.
 
Especially adverse financial implications.
 
 
== See also ==
* [[Asset beta]]
* [[Business risk]]
* [[Capital asset pricing model]]
* [[Deleverage]]
* [[Equity risk]]
* [[Financial asset]]
* [[Financial liability]]
* [[Financial market price risk]]
* [[Financial risk management]]
* [[Guide to risk management]]
* [[Leverage]]
* [[Non-financial risk]]
* [[Operational risk]]
* [[Reputational risk]]
* [[Return]]
* [[Risk]]
* [[Risk taxonomy]]
* [[Ungeared beta]]
 
 
===Other links===
[http://www.treasurers.org/node/8443  Masterclass: Measuring financial risk, ''Will Spinney'', The Treasurer]
 
[[Category:Manage_risks]]

Revision as of 22:33, 13 March 2021

Global systemically important bank.

A G-SIB is a large bank whose potential failure would have widespread negative effects in the broader financial system.

For this reason, these banks are subject to more stringent regulation and capital adequacy requirements than other institutions.


UK-headquartered G-SIBs include HSBC, Barclays and Standard Chartered Bank.


See also

Retrieved from ‘https://wiki.treasurers.org/w/index.php?title=Financial_risk&oldid=22679’