Market liquidity risk and Systemically Important Bank: Difference between pages

Revision as of 16:26, 17 March 2022

(SIB).

A bank whose disorderly failure would, because of its:

(i) Size,

(ii) Complexity, and

(iii) Systemic interconnectedness

cause significant disruption to the wider financial system and to economic activity in its (main) country or region of operation.

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

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-Market liquidity risk refers to the risk that market transactions will become difficult or impossible due to market disruptions or inadequate market depth.
+(SIB).
-Contrasted with, though also overlapping, funding liquidity risk.
+A bank whose disorderly failure would, because of its:
+(i) Size,
+(ii) Complexity, and
+(iii) Systemic interconnectedness
+cause significant disruption to the wider financial system and to economic activity in its (main) country or region of operation.
+For this reason, SIBs are subject to more stringent regulation and capital adequacy requirements than other institutions.
 == See also ==
-*[[Liquidity risk]]
+* [[Bank]]
-*[[Funding liquidity risk]]
+* [[BSBY]]
-*[[Guide to risk management]]
+* [[Capital adequacy]]
+* [[Financial institution]]
+* [[Global SIFI]]
+* [[Regulation]]
+* [[Systemic risk]]
+* [[Systemically Important Financial Institution]]  (SIFI)
+* [[Too Big To Fail]]
-[[Category:Financial_management]]
+[[Category:Accounting,_tax_and_regulation]]
+[[Category:The_business_context]]
+[[Category:Identify_and_assess_risks]]
 [[Category:Manage_risks]]
+[[Category:Risk_frameworks]]
+[[Category:Risk_reporting]]