The Bank of England has also recognised that a collapse in the value of oil, gas and coal assets as nations tackle global warming is
a potential systemic risk to the economy, with London being particularly at risk owing to its huge listings of coal.
The process by which one would try to reduce systemic risk would in itself present
a potential systemic risk.
The China Banking Regulatory Commission made the request to gain better control of
potential systemic risk as domestic companies move to acquire more assets in global markets, Reuters said.
The lesson of the 1930s, the 2007 - 2008 crisis and the European crisis of 2011 seems pretty clear: banking stress is a sign of
potential systemic risk.
Not exact matches
In his committee testimony, Giancarlo wrote that the tech has «the
potential to enhance economic efficiency, mitigate centralized
systemic risk, defend against fraudulent activity and improve data quality and governance.»
For example, during the first flare - up of the European sovereign crisis back in 2011 (when Greece really did hold
systemic risk potential) and when U.S. political discord led to significant fiscal tightening, the Fed offset both of these with even greater policy accommodation.
And the FSB is actively looking for the next
potential source of
systemic risk.
The
potential impact on
systemic risk is the most difficult aspect of the passive investing revolution to tackle given its largely theoretical nature to this point.
Poledna points out that the new method may still underestimate
systemic risk, as it leaves out two additional
potential sources of
risk — overlapping investment portfolios, and funding liquidity.
Abstract concepts are broken down into variables that replicate the
systemic nature of real - world decision - making without
potential risks involved.
We see then the announcement in the last few days that one of the greatest
potential sources of
systemic risk to the financial system is Deutsche Bank.
A decade ago, citing such evidence, I noted that «megabanks being formed by growth and consolidation are increasingly complex entities that create the
potential for unusually large
systemic risks in the national and international economy should they fail.»