Systemic risk: Difference between revisions

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imported>Doug Williamson
(Add second definition.)
imported>Doug Williamson
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* [[Gridlock]]
* [[Gridlock]]
* [[Macroprudential]]
* [[Macroprudential]]
* [[SIPS]]
*[[Systemically Important Payment System]] (SIPS)
* [[Systematic risk]]
* [[Systematic risk]]
* [[Systemic Risk Buffer]]
* [[Systemic Risk Buffer]]

Revision as of 19:32, 26 June 2022

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