Systemic Risk

(redirected from Systemic Risks)

Systemic Risk

Risk common to a particular sector or country. Often refers to a risk resulting from a particular "system" that is in place, such as the regulator framework for monitoring of financial_institutions.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Systemic Risk

A risk that is carried by an entire class of assets and/or liabilities. Systemic risk may apply to a certain country or industry, or to the entire global economy. It is impossible to reduce systemic risk for the global economy (complete global shutdown is always theoretically possible), but one may mitigate other forms of systemic risk by buying different kinds of securities and/or by buying in different industries. For example, oil companies have the systemic risk that they will drill up all the oil in the world; an investor may mitigate this risk by investing in both oil companies and companies having nothing to do with oil. Systemic risk is also called systematic risk or undiversifiable risk.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
BANKING AND CREDIT NEWS-June 24, 2019--Kotak Bank head says NBFC crisis is not a systemic risks
M2 EQUITYBITES-June 24, 2019--Kotak Bank head says NBFC crisis is not a systemic risks
Global Banking News-June 24, 2019--Kotak Bank head says NBFC crisis is not a systemic risks
"Anything that involves a merger will very well take into account systemic risks," shetold lawmakers in the lower house of parliament.
With financial market pressures expected to continue for some time, the Bangko Sentral ng Pilipinas (BSP), along with other central banks (CBs) in Asia, are engaging in a regional dialogue focusing on financial stability amid potential threats of systemic risks.
Given the minimal impact of Hanjin's bankruptcy on banks and the absence of systemic risks, investors should take advantage of the drop in banking stocks to buy them at cheaper valuations.
The enhanced monitoring covers detailed assessment of major borrowing entities or groups, their exposures across entire banking industry to proactively address any systemic risks that may arise due to defaults by large borrowers or weakening in their financial health.
SOFIA, Sept 26 (Reuters) - The banks in Bulgaria will have to set aside additional capital as of October 2019 to counter a build-up of cyclical systemic risks linked to credit growth and real estate prices, the Bulgarian central bank said on Wednesday.
The FSR reports on the FSCC's 'assessment of the overall risks to the financial market.' A recurring theme in the FSCC is the Systemic Risk Review wherein brewing systemic risks are reviewed and evaluated for intervention.
In pursuance of SBP Vision 2020, it has committed to strengthen its financial stability regime to identify and manage systemic risks arising from within and outside the country's financial system, said the Bank.
Scholars in the 2008 conference on the "New Progresses on Research of Financial Systemic Risks" in London generally believed that research on financial systemic risks emphasizes the effects of the financial asset price fluctuation possessed by participators in financial market on the whole system.

Full browser ?