From ACT Wiki
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'.
By extension, and more loosely, all risks accepted by participating in a given market, including the risk of contagion.
- Conduct risk
- European Systemic Risk Board
- Financial Policy Committee
- Financial stability
- Risk management
- Systematic risk
- Systemically Important Bank
- Systemically Important Financial Institution
- Systemically Important Payment System (SIPS)
- Systemic Risk Buffer
- Transfer system