SOURCE ROOM
What is systemic risk?
Bank of Japan (Tell me! Nichigin)
Claims Supported by This Source
- Systemic risk = The risk that the failure of an individual financial institution to meet its payment obligations, or a disruption in a market or settlement system, could spread to other parts of the financial system.
- A non-payment at one location spreads like a domino effect through the settlement network (example of 10 billion yen).
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