Systemic risk: Difference between revisions

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1. ''Market supervision and regulation.''
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.   
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.   


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These secondary adverse consequences are sometimes known as a 'domino effect' or 'contagion'.
These secondary adverse consequences are sometimes known as a 'domino effect' or 'contagion'.
2.
By extension, and more loosely, all risks accepted by participating in a given market, including the risk of contagion.




== See also ==
== See also ==
* [[Contagion]]
* [[Conduct risk]]
* [[European Systemic Risk Board]]
* [[European Systemic Risk Board]]
* [[Financial Policy Committee]]
* [[Financial Policy Committee]]
* [[Financial stability]]
* [[Gridlock]]
* [[Gridlock]]
* [[Macroprudential]]
* [[Regulation]]
* [[Risk]]
* [[Risk management]]
* [[Supervision]]
* [[Systematic risk]]
* [[Systematic risk]]
* [[Systemically Important Bank]]
* [[Systemically Important Financial Institution ]]
*[[Systemically Important Payment System]]  (SIPS)
* [[Systemic Risk Buffer]]
* [[Transfer]]
* [[Transfer system]]
* [[Transfer system]]
* [[Unwinding]]
* [[Unwinding]]
* [[Systemically Important Financial Institution ]]


[[Category:Manage_risks]]
[[Category:Manage_risks]]

Latest revision as of 18:22, 13 March 2023

1. Market supervision and regulation.

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'.


2.

By extension, and more loosely, all risks accepted by participating in a given market, including the risk of contagion.


See also