Systemic Financial Risk In Payment Systems

Author : International Monetary Fund
Publisher : International Monetary Fund
Page : 46 pages
File Size : 44,9 Mb
Release : 1990-07-01
Category : Business & Economics
ISBN : 9781451962437

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Systemic Financial Risk in Payment Systems by International Monetary Fund Pdf

Efficient and stable payments systems are of fundamental importance in maintaining an orderly international monetary system. Major disruptions of national and international payments systems would have highly adverse effects on international trade, capital flows, and real activity. A key issue--now being addressed by authorities in a number of major countries--is whether existing institutional arrangements need to be modified in order to reduce the liquidity and credit risks that have arisen as a result of the expansion of international capital flows and the growing integration of major financial markets. This paper examines the nature of these risks and the policies that are being implemented to manage or curb them.

Author : Ronald Heijmans,Ms.Froukelien Wendt
Publisher : International Monetary Fund
Page : 29 pages
File Size : 49,8 Mb
Release : 2020-06-05
Category : Business & Economics
ISBN : 9781513545080

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Measuring the Impact of a Failing Participant in Payment Systems by Ronald Heijmans,Ms.Froukelien Wendt Pdf

Banks and financial market infrastructures (FMIs) that are not able to fulfill their payment obligations can be a source of financial instability. This paper develops a composite risk indicator to evaluate the criticality of participants in a large value payment system network, combining liquidity risk and interconnections in one approach, and applying this to the TARGET2 payment system. Findings suggest that the most critical participants in TARGET2 are other payment systems, because of the size of underlying payment flows. Some banks may be critical, but this is mainly due to their interconnectedness with other TARGET2 participants. Central counterparties and central securities depositories are less critical. These findings can be used in financial stability analysis, and feed into central bank policies on payment system access, oversight, and crisis management.

Author : Stephen Millard,Andrew Haldane,Victoria Saporta
Publisher : Routledge
Page : 287 pages
File Size : 49,9 Mb
Release : 2007-09-17
Category : Business & Economics
ISBN : 9781134071302

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The Future of Payment Systems by Stephen Millard,Andrew Haldane,Victoria Saporta Pdf

Drawing on wide-ranging contributions from prominent international experts and discussing some of the most pressing issues facing policy makers and practitioners in the field of payment systems today, this volume provides cutting-edge perspectives on the current issues surrounding payment systems and their future. It covers a range of continually important topics, including: the form payment systems might take in the future the risks associated with this evolution the techniques being deployed to assess these risks and the implications these risks have for the respective roles of the public and private sector. Produced in association with the Bank of England, this book is fascinating reading for practitioners and policy makers in the field of payment systems, as well as students and researchers engaged with the economics of payments and central banking policy.

Author : Aron Gottesman,Michael Leibrock
Publisher : John Wiley & Sons
Page : 277 pages
File Size : 42,9 Mb
Release : 2017-06-26
Category : Business & Economics
ISBN : 9781119348504

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Understanding Systemic Risk in Global Financial Markets by Aron Gottesman,Michael Leibrock Pdf

An accessible and detailed overview of the risks posed by financial institutions Understanding Systemic Risk in Global Financial Markets offers an accessible yet detailed overview of the risks to financial stability posed by financial institutions designated as systemically important. The types of firms covered are primarily systemically important banks, non-banks, and financial market utilities such as central counterparties. Written by Aron Gottesman and Michael Leibrock, experts on the topic of systemic risk, this vital resource puts the spotlight on coherency, practitioner relevance, conceptual explanations, and practical exposition. Step by step, the authors explore the specific regulations enacted before and after the credit crisis of 2007-2009 to promote financial stability. The text also examines the criteria used by financial regulators to designate firms as systemically important. The quantitative and qualitative methods to measure the ongoing risks posed by systemically important financial institutions are surveyed. A review of the regulations that identify systemically important financial institutions The tools to use to detect early warning indications of default A review of historical systemic events their common causes Techniques to measure interconnectedness Approaches for ranking the order the institutions which pose the greatest degree of default risk to the industry Understanding Systemic Risk in Global Financial Markets offers a must-have guide to the fundamentals of systemic risk and the key critical policies that work to reduce systemic risk and promoting financial stability.

Author : C. E. V. Borio,P. van den Bergh
Publisher : Unknown
Page : 90 pages
File Size : 52,9 Mb
Release : 1993
Category : Banks and banking, International
ISBN : UCSD:31822016958647

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The Nature and Management of Payment System Risks by C. E. V. Borio,P. van den Bergh Pdf

Author : Mr.Bruce J. Summers
Publisher : International Monetary Fund
Page : 232 pages
File Size : 48,8 Mb
Release : 1994-12-15
Category : Business & Economics
ISBN : 1557753865

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The Payment System by Mr.Bruce J. Summers Pdf

This book makes a practical contribution to increased understanding of payment system design and management and of the relationship between the payment system and monetary policy. The authors of the twelve papers included in the book are central banking experts from around the world who draw on their experiences in providing technical assistance to the central banks of the countries of the former U.S.S.R.

Author : Marco Rossi
Publisher : Springer
Page : 163 pages
File Size : 43,9 Mb
Release : 1998-06-12
Category : Business & Economics
ISBN : 9781349263745

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Payment Systems in the Financial Markets by Marco Rossi Pdf

The payment system is one of the mechanisms essential to the working of an exchange economy. Over the last decade, central banks have been determined to improve their payment systems to harmonise and reduce risk, and in Europe to anticipate their future interconnection in the TARGET system. This book provides the analytic framework for an informed policy debate on the implications for monetary policy.

Author : National Research Council,Division on Engineering and Physical Sciences,Board on Mathematical Sciences and Their Applications
Publisher : National Academies Press
Page : 120 pages
File Size : 44,7 Mb
Release : 2008-01-17
Category : Political Science
ISBN : 9780309107525

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New Directions for Understanding Systemic Risk by National Research Council,Division on Engineering and Physical Sciences,Board on Mathematical Sciences and Their Applications Pdf

The stability of the financial system and the potential for systemic events to alter its function have long been critical issues for central bankers and researchers. Recent events suggest that older models of systemic shocks might no longer capture all of the possible paths of such disturbances or account for the increasing complexity of the financial system. To help assess these concerns, the Federal Reserve Bank of New York and the NRC cosponsored a conference that brought together engineers, scientists, economists, and financial market experts to promote better understanding of systemic risk in a variety of fields. The book presents an examination of tools used in ecology and engineering to study systemic collapse in those areas; a review of current trends in economic research on systemic risk, the payments system, and the market of interbank funds; and for context, descriptions of how systemic risk in the financial system affects trading activities.

Author : David B. Humphrey
Publisher : World Bank Publications
Page : 114 pages
File Size : 41,8 Mb
Release : 1995
Category : Business & Economics
ISBN : 0821331116

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Payment Systems by David B. Humphrey Pdf

World Bank Technical Paper No. 260. An efficient payment system is a necessary precondition for business development. This study outlines the basic operating principles of a payment system and reviews its benefits, costs, risks, and problems. It examines in detail the systems currently in place in the developed economies of Europe and the United States and draws from the analyses to support recommendations for restructuring those systems in developing countries. The study reviews the various types of payment practices that exist in mature systems including cash, check, GIRO, debit and credit card, direct debit, and large-value wire transfers. A range of short- and long-term improvements in payment systems are recommended for developing countries. There is a special focus on the Russian payment system and the problems it faces in transition from a centrally planned to an market economy.

Author : Andreas Jobst
Publisher : International Monetary Fund
Page : 70 pages
File Size : 44,5 Mb
Release : 2012-08-01
Category : Business & Economics
ISBN : 9781475505597

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Measuring Systemic Risk-Adjusted Liquidity (SRL) by Andreas Jobst Pdf

Little progress has been made so far in addressing—in a comprehensive way—the externalities caused by impact of the interconnectedness within institutions and markets on funding and market liquidity risk within financial systems. The Systemic Risk-adjusted Liquidity (SRL) model combines option pricing with market information and balance sheet data to generate a probabilistic measure of the frequency and severity of multiple entities experiencing a joint liquidity event. It links a firm’s maturity mismatch between assets and liabilities impacting the stability of its funding with those characteristics of other firms, subject to individual changes in risk profiles and common changes in market conditions. This approach can then be used (i) to quantify an individual institution’s time-varying contribution to system-wide liquidity shortfalls and (ii) to price liquidity risk within a macroprudential framework that, if used to motivate a capital charge or insurance premia, provides incentives for liquidity managers to internalize the systemic risk of their decisions. The model can also accommodate a stress testing approach for institution-specific and/or general funding shocks that generate estimates of systemic liquidity risk (and associated charges) under adverse scenarios.

Author : Leonardo Martinez-Diaz,Jesse M. Keenan
Publisher : U.S. Commodity Futures Trading Commission
Page : 196 pages
File Size : 53,8 Mb
Release : 2020-09-09
Category : Science
ISBN : 9780578748412

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Managing Climate Risk in the U.S. Financial System by Leonardo Martinez-Diaz,Jesse M. Keenan Pdf

This publication serves as a roadmap for exploring and managing climate risk in the U.S. financial system. It is the first major climate publication by a U.S. financial regulator. The central message is that U.S. financial regulators must recognize that climate change poses serious emerging risks to the U.S. financial system, and they should move urgently and decisively to measure, understand, and address these risks. Achieving this goal calls for strengthening regulators’ capabilities, expertise, and data and tools to better monitor, analyze, and quantify climate risks. It calls for working closely with the private sector to ensure that financial institutions and market participants do the same. And it calls for policy and regulatory choices that are flexible, open-ended, and adaptable to new information about climate change and its risks, based on close and iterative dialogue with the private sector. At the same time, the financial community should not simply be reactive—it should provide solutions. Regulators should recognize that the financial system can itself be a catalyst for investments that accelerate economic resilience and the transition to a net-zero emissions economy. Financial innovations, in the form of new financial products, services, and technologies, can help the U.S. economy better manage climate risk and help channel more capital into technologies essential for the transition. https://doi.org/10.5281/zenodo.5247742

Author : Prasanna Gai
Publisher : OUP Oxford
Page : 200 pages
File Size : 53,5 Mb
Release : 2013-03-28
Category : Business & Economics
ISBN : 9780191654060

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Systemic Risk by Prasanna Gai Pdf

Systemic Risk opens new ground in the study of financial crises. It treats the financial system as a complex adaptive system and shows how lessons from network disciplines - such as ecology, epidemiology, and statistical mechanics - shed light on our understanding of financial stability. Using tools from network theory and economics, it suggests that financial systems are robust-yet-fragile, with knife-edge properties that are greatly exacerbated by the hoarding of funds and the fire sale of assets by banks. This book studies the damaging network consequences of the failure of large inter-connected institutions, explains how key funding markets can seize up across the entire financial system, and shows how the pursuit of secured finance by banks in the wake of the global financial crisis can generate systemic risks. The insights are then used to model banking systems calibrated to data to illustrate how financial sector regulators are beginning to quantify financial system stress.

Author : Alexander M. Karminsky,Paolo Emilio Mistrulli,Mikhail I. Stolbov,Yong Shi
Publisher : Springer Nature
Page : 395 pages
File Size : 46,7 Mb
Release : 2021-05-11
Category : Business & Economics
ISBN : 9783030697488

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Risk Assessment and Financial Regulation in Emerging Markets' Banking by Alexander M. Karminsky,Paolo Emilio Mistrulli,Mikhail I. Stolbov,Yong Shi Pdf

This book describes various approaches in modelling financial risks and compiling ratings. Focusing on emerging markets, it illustrates how risk assessment is performed and analyses the use of machine learning methods for financial risk assessment and measurement. It not only offers readers insights into the differences between emerging and developed markets, but also helps them understand the development of risk management approaches for banks. Highlighting current problems connected with the evaluation and modelling of financial risks in the banking sector of emerging markets, the book presents the methodologies applied to credit and market financial risks and integrated and payment risks, and discusses the outcomes. In addition it explores the systemic risks and innovations in banking and risk management by analyzing the features of risk measurement in emerging countries. Lastly, it demonstrates the aggregation of approaches to financial risk for emerging financial markets, comparing the experiences of various countries, including Russia, Belarus, China and Brazil.

Author : Mr.D. F. I. Folkerts-Landau
Publisher : International Monetary Fund
Page : 28 pages
File Size : 47,5 Mb
Release : 1997-11-01
Category : Business & Economics
ISBN : 9781451857191

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Wholesale Payments and Financial Discipline, Efficiency, and Liquidity by Mr.D. F. I. Folkerts-Landau Pdf

Properly designed wholesale payments system can make a significant contribution to enhancing market discipline in the financial sector, reducing the risk of systemic disturbance and permitting a less extensive safety net for financial institutions. The objective of these reforms has been to achieve a reduction of the credit risk associated with the growth in intraday credit exposures that arises in net settlement systems and in real-time gross systems when the central bank provides daylight overdrafts. Intraday payments-related credit in net settlement systems has been reduced by restructuring payment systems into real-time gross settlement systems with collateralized overdrafts, while in the existing real-time gross settlement systems, the risk-abatement program currently in effect has taken the form of caps and charges on uncollateralized daylight credit.

Author : Mr.Omotunde E. G. Johnson
Publisher : International Monetary Fund
Page : 576 pages
File Size : 47,9 Mb
Release : 2002-04-29
Category : Business & Economics
ISBN : 1589060121

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Financial Risks, Stability, and Globalization by Mr.Omotunde E. G. Johnson Pdf

This book covers financial sector stability issues in the following areas: risk management and governance in financial institutions; financial crises and contagion; domestic monetary and financial policies; and international cooperation. The papers were presented at the IMF’s eighth Central Banking Seminar by authors from academia, investment banks, government, and international institutions. The papers discuss such subjects as bank soundness, systemic bank restructuring, and the safety and efficiency of systemically important payment systems and their interaction with the macroeconomic environment.