Global SIFI and Idiosyncratic risk: Difference between pages

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imported>Doug Williamson
(Tidy up and layout)
 
imported>Doug Williamson
(Expand for bank regulation context. Source: MCT bank regulation study material.)
 
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(G-SIFI).
#In the Capital Asset Pricing Model, the same as Diversifiable risk. Also known as Specific risk or Unsystematic risk.
#The concept is also important in bank regulation and stress testing. Regulated banks must be resilient both to shocks which are market-wide, and to shocks which are idiosyncratic or specific to the regulated entity.


A Global Systemically Important Financial Institution, failure of which would have global financial stability implications.


Lists of G-SIFIs are published and maintained by the [[Financial Stability Board]] at [http://www.financialstabilityboard.org/what-we-do/policy-development/systematically-important-financial-institutions-sifis/].


The list is in two sections:
== See also ==
* [[Diversifiable risk]]
* [[Stress test]]


*one for G-SIBs (Global Systemically Important Banks), compiled  with the [[BCBS]] and
[[Category:Financial_risk_management]]
 
*one for Global Systemically Important Insurers (G-SIIs), complied with after consultation with the [[IAIS]] and national supervisors.
 
 
== See also ==
* [[Systemically Important Financial Institution]]
* [[G-SIB]]
* [[BCBS]]
* [[IAIS]]

Revision as of 12:25, 1 September 2015

  1. In the Capital Asset Pricing Model, the same as Diversifiable risk. Also known as Specific risk or Unsystematic risk.
  2. The concept is also important in bank regulation and stress testing. Regulated banks must be resilient both to shocks which are market-wide, and to shocks which are idiosyncratic or specific to the regulated entity.


See also