imported>Doug Williamson |
imported>Doug Williamson |
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| ''Bank supervision - capital adequacy - leverage.''
| | (SWF). |
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| The tendency of financial systems to amplify fluctuations in the economic cycle.
| | An investment fund owned by a sovereign government, whose investment strategies include investing in foreign assets. |
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| | For example, the Qatar Investment Authority (QIA). |
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| :<span style="color:#4B0082">'''''Interaction and amplification'''''</span>
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| :"Herd behaviour has long been known to be an essential feature of financial markets.
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| :More subtly, individual reactions, by themselves rational, can, by the virtue of their mutual interaction, produce strong amplification effects.
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| :A broader definition of procyclicality would thus encompass three components, which cannot easily be distinguished in real life:
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| ::(1) fluctuations around the trend
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| ::(2) changes in the trend itself and
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| ::(3) possible cumulative deviations from equilibrium value.
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| :This points to the policy challenges regulators face.
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| :They have to try and identify when pure cyclical fluctuations morph into something different: either a change in the trend itself or the start of a cumulative process."
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| :''Jean-Pierre Landau, Deputy Governor of the Bank of France, BIS Review 94/2009.''
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| | Also known as a ''sovereign fund''. |
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| == See also == | | == See also == |
| * [[Capital adequacy]] | | * [[Investment fund]] |
| * [[Countercyclical]] | | * [[Qatar]] |
| * [[Cyclical]] | | * [[Sovereign]] |
| * [[Herd behaviour]]
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| * [[Leverage]]
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| * [[Procyclical]]
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| * [[Prudential]]
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| * [[Total Loss Absorbing Capacity]]
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| [[Category:Accounting,_tax_and_regulation]]
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| [[Category:The_business_context]]
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| [[Category:Investment]] | | [[Category:Investment]] |
| [[Category:Long_term_funding]]
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| [[Category:Identify_and_assess_risks]]
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| [[Category:Manage_risks]]
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| [[Category:Risk_frameworks]]
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| [[Category:Risk_reporting]]
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| [[Category:Financial_products_and_markets]]
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(SWF).
An investment fund owned by a sovereign government, whose investment strategies include investing in foreign assets.
For example, the Qatar Investment Authority (QIA).
Also known as a sovereign fund.
See also
