Systemic risk

From ACT Wiki
Revision as of 13:04, 15 August 2013 by imported>Doug Williamson (Spacing 15/8/13)
Jump to navigationJump to search

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 of financial markets.


See also