systemic risk

highlighted foreign-currency mortgages as the sort of danger that the newly formed European Systemic Risk Board would be looking for.

And its monetary-policy arm's overstimulative policy ahead of the credit boom arguably made it a stoker of systemic risk.

It is only a commercial banking crisis that poses a systemic risk and can lead to the sort of mess we face today.

He said it was "possible" that the Fed could take on some sort of systemic risk duties.

He said the Fed had the best technical expertise to be a systemic risk regulator.

If 2008 was the year of systemic risk, particularly in the financial sector, 2009 seems likely to be a year dominated by specific risk.

In the case of Citigroup, a real systemic risk for the financial markets had to be contained.

In his testimony, Mr Geithner said the Fed was "best positioned" to regulate systemic risk.

Some discussion of the role of securitisation and systemic risk is essential, even if it feels like a lot of detail for beginners to grasp.

The traditional systemic risk was the run on the bank.

"Thousands and thousands and thousands of foreclosures create as much systemic risk as one investment bank, " Senator Dodd said.

But in terms of systemic risk and the risks of a financial meltdown, you almost have to go back that far to find a good analogy.

An independent Financial Policy Committee would advise the central bank on measures to counter systemic risk, with its minutes made public.

Washington was warned repeatedly over the last decade that these high-cost loans represented a systemic risk to the economy.

Now, in the name of systemic risk, bail-outs have poured staggering sums into the failed institutions that brought the economy down.

Christopher Whalen, a US financial analyst argues the only way to remove systemic risk is to force all trades on to transparent exchanges.

Tarp may have achieved its financial aims but, in terms of systemic risk, it has failed.

Once again, the question will be how the near-insolvent banks can be kept afloat, to avoid systemic risk.

Intervention as a last resort on the basis of systemic risk and public control must be restricted to the financial sector.

Growing awareness of this disproportionate exposure to systemic risk may reduce investors' appetite for securitised products.

But powerful financial interests were sounding a largely supportive note, so far, on the systemic risk question.

The Basel Committee on Banking Supervision said on Tuesday that it will make systemic risk one of its main priorities in the coming months.

More conservative capital requirements for firms big enough to pose a systemic risk to the economy.

Then, to address systemic risk, in 2010 their portfolios will begin to be gradually reduced at the rate of 10 per cent per year ". "

But to treat this problem as systemic risk to be dealt with by public authorities is to cast the government as an unpaid credit insurer.

The emerging world has also increasingly been seen as less of a systemic risk as its banks are not so exposed to toxic assets.

It establishes a systemic-risk oversight council, comprising the Treasury, federal regulatory agencies and an independent member.

The soon to be created European Systemic Risk Board should try to perform a similar function.

While limiting systemic risk, this lowers the potential rate of growth and fuels significant consolidation in the financial services sector.

The implication is greater systemic risk, as the private banks increase their exposure to imbalances in (principally) the property sector.

Systemic risk is due to be considered separately after the summer recess.

The politicians who dreamed up the directive talk about systemic risk, a concern for financial stability.

The emergence of financial conglomerates has raised concern over the increasing systemic risk of financial systems.

Stock index futures as the innovative financial derivative instrument provide a place to avoid systemic risk in the stock market.

The reform of systemic risk in the financial system would be mostly organic, not requiring the heavy hand of government.

However, in the aftermath of the credit crunch we have entered into an era in which global systemic risk is high and unpredictable.

If there is no effective regulatory solution to the problem of systemic risk, that is all it will be.

Without a resolution of this global debt burden, systemic risk will fester and grow.

This potential for systemic risk in the rating regime itself is one problem that must be addressed.

(not to mention unease) regarding the possibility of systemic risk posed by the financial sector.

With a few exceptions, most central banks paid little attention to systemic risk and the risks posed by credit interlinkages.

You set up some rules of the road, ensure transparency and openness, guard against huge systemic risk that will lead . . .

Another priority is to get a better understanding of systemic risk, which Messrs Scholes and Thaler agree has been seriously underestimated.

Governments now need to work on reducing systemic risk in the financial sector without unnecessarily restraining financial innovation .

"We all recognize that there are vast numbers of hedge funds that might not pose a systemic risk at all, " Ross said.

This would increase counterparty dependencies, systemic risk, and worsen risk management spirals as discussed above.

A narrow Fed would lose its banking supervision authorities and would play a subordinate role in a new systemic risk agency.

Some products meant to limit risk bury it in complexity, or just transform it into counterparty risk or systemic risk instead.

Proposals include bank taxes , the creation of systemic risk funds, and capital surcharges for systemically important banks .

As for the rest, it blithely declares that "market discipline is the most effective tool to limit systemic risk. "

First, systemic risk is only in small part correlated with size.

The regulation and supervisory oversight of financial institutions is another critical tool for limiting systemic risk.

But there are many questions over the merits of a systemic-risk regulator.

Systemic risk is unlikely to be caused by the equity investments banks make in hedge funds or private equity.

For regulators, larger, diversified institutions may be more stable than investment banks but they pose an even greater systemic risk.

They should give powers to ministries of finance and central banks "to use extraordinary means to contain systemic risk" .

Some even muttered that PIMCO itself posed as great a systemic risk as large banks, so important had it become to the fabric of markets.

But as Western policymakers would now wearily agree, less debt means less systemic risk for the banks if and when the property cycle turns.

if the answer in(2)is yes, whether the dynamic systemic risk can be fitted and forecasted well.

The credit quality of the lending banks started to slip, triggering concerns about systemic risk.

That's probably why there have been fewer concerns about systemic risk this time round.

Despite some eerie parallels, it is hard to conclude that ETFs yet pose a systemic risk on the same scale as mortgage-backed securities.

The Managed Funds Association, a Washington-based hedge- fund group, said it supports a systemic-risk overseer.

But to suggest that small venture funds of $30mm could possibly be creating systemic risk to the global financial system is ludicrous.

Concern about systemic risk has diminished, and overall credit conditions have started to improve.

Indeed there is every reason to think that policy independence would benefit systemic risk regulation as well.

After weathering that storm a lot of that systemic risk has been taken out.

If done correctly it should strengthen market discipline on banks and reduce the potential for systemic risk.

The European Union is also proposing that European central bankers work with bank supervisors to detect and prevent systemic risk.

Tougher powers for the Federal Reserve to oversee the largest banks that pose "a systemic risk" .

A broad Fed would keep its banking supervision authorities and bolt on to them new systemic risk or "macroprudential" powers.

A group that accounts for nearly 50% of a market also introduces systemic risk.

People's idea of a systemic risk can change quickly.

Ultimately, the Fed saw too much systemic risk, reversed course and intervened in AIG.

It also faces a proposal in Congress that could allow America's new systemic-risk regulator to suspend the rules.

"The Fed is most nervous about the systemic risk, " said one senior executive at Bear, the fifth largest investment bank in the US.

If we are going to have a systemic-risk monitor, it should be an independent council of regulators.

The systemic risk in traditional capital asset pricing model(CAPM) is completely refected through beta coefficient.

Fourth , work closely with the systemic risk regulator and other supervisors to head off compound failures .

"The focus on systemic risk should contribute to greater stability, " said Mr Summers.

Depending on decentralized investment the investor can efficiently avoid non-systemic risk but not systemic risk.

The state should step in only when a firm's collapse poses a systemic risk.

Mr Bernanke says this task should fall on a new systemic risk council of senior regulators.

There's a systemic risk here also, with 51% of the subordinated debt issuance held by other Chinese banks.

And some production we would be better off if we could do without: guns are one example, systemic risk-raising financial products another.

adopting a static, fixed measurement for systemic risk would fail to address the problem.

Their economic usefulness, it is argued, is far outweighed by their capacity to create systemic risk.

"[But] I don't believe this problem poses a systemic risk to the Chinese banking system. "

They must also root out compensation schemes that encourage systemic risk.

The Fed must be put in charge of regulating systemic risk.

To enact the program, the FDIC had to cite a 'systemic risk' to the economy.

And we will work with the FSA on a lighter regime for insurance services where the potential consumer harm and systemic risk is low.

an increase in systemic risk would trigger a higher surcharge.

Banks create systemic risk endogenously.

This could result in systemic risk when another financial crisis hits.

The securitisation of mortgages added a new dimension of systemic risk.

That means that there is systemic risk in the market in addition to the risks most market participants perceived prior to the crisis.

It will also create a systemic-risk board to watch for the build-up of financial risk.

All of this means just one thing: If we are to have a mechanism to prevent systemic risk it should be independent of the Fed.

The dissolution of the systemic risk of China stock market--The theoretical analyses based on "market of the lemon"

Fears that a large hedge fund would blow up and pose a systemic risk have not been realised.

The systemic-risk regulators may not spot crises coming, but there is plenty they can do to make the system a little bouncier when it falls.

One reason is that many firms now think systemic risk in the financial system has fallen to a low level.

Looking further ahead, we need a fundamental rethink of how to manage systemic risk internationally.

Crucially, systemic risk is also a moving target, and a rapidly moving one at that.

And we also need to promote transparency, guard against systemic risk, and discourage excessive risk-taking.

Futures markets last week under the influence of systemic risk high dive, PTA is difficult to survive.

We believe there is no convincing answer; we should instead find ways to manage the systemic risk of bank failures.

Not all such systemic risk powers will be concentrated in the Fed.

The Fed would be charged with detecting the development of systemic risk in the economy.

Schumer said Treasury needs to address the systemic risk of complex financial instruments such as credit-default swaps.

The ostensible reason for this pay proposal is that hedge funds create "systemic risk" .

The wider question has to do with systemic risk.

The problem with hedge funds is that a lack of information hinders outsiders' ability to measure their contribution to systemic risk.

I was very worried in the 1990s about predatory lending, about systemic risk, about the stability of Fannie and Freddie.

The good news is that bank failures are highly unlikely, and the threat of systemic risk even more so.

How to measure systemic risk of banks is very important to China whose financial system is composed of banks.

This promotes market-wide use of the Exchange Fund paper, increases the liquidity of fixed-income market and helps reduce systemic risk.

There is broad agreement that a global focus on systemic risk is needed.

For example, are front-line incentive systems creating systemic risk?

Just as importantly, the measurement of systemic risk should be a continuous process, covering all institutions;

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