Systemic Risk Contribution from Financial Network in the UK

2016 ◽  
Author(s):  
Ahmed Sakr
Keyword(s):  
Systemic Risk ◽  
Financial Network ◽  
Risk Contribution ◽  
The Uk

scholarly journals Transmission channels of systemic risk and contagion in the European financial network

2015 ◽  
Vol 61 ◽  
pp. S36-S52 ◽  
Author(s):  
Nikos Paltalidis ◽  
Dimitrios Gounopoulos ◽  
Renatas Kizys ◽  
Yiannis Koutelidakis
Keyword(s):  
Systemic Risk ◽  
Financial Network ◽  
Transmission Channels

Part II United Kingdom, 9 Lessons of LBIE: Reuse and Rehypothecation

2017 ◽  
Author(s):  
Benjamin Joanna
Keyword(s):  
Risk Management ◽  
United Kingdom ◽  
Financial Institutions ◽  
Systemic Risk ◽  
Free Fall ◽  
Shadow Banking ◽  
Profound Impact ◽  
Asset Protection ◽  
Lehman Brothers ◽  
The Uk

Two notable traumas followed the failure of Lehman Brothers on 15 September 2008. The first was the catastrophic delivering that affected wholesale financial institutions in 2009, as the post-LBIE markets went into free-fall. The second was the very long delays in the return of client assets held by in the UK Lehman Brothers International (Europe) (LBIE). The systemic failure has been associated with the reuse of securities collateral in general. Some have argued that the client asset delays were associated with a category of reuse, known as rehypothecation, in particular. Regulatory reforms have been introduced with a view to addressing both. However, this chapter argues that the true lesson of both failures is not yet fully reflected in regulation. This is the profound impact of shadow banking, and the reuse of securities collateral within it, upon client asset protection and systemic risk management alike.

scholarly journals Diversification and Systemic Risk: A Financial Network Perspective

Risks ◽  
2018 ◽  
Vol 6 (2) ◽  
pp. 54 ◽  
Author(s):  
Rüdiger Frey ◽  
Juraj Hledik
Keyword(s):  
Systemic Risk ◽  
Financial Network

scholarly journals Systemic Risk Contribution and Contagion of Industrial Sectors in China: From the Global Financial Crisis to the COVID-19 Pandemic

2021 ◽  
Vol 2021 ◽  
pp. 1-16
Author(s):  
Jianxu Liu ◽  
Yangnan Cheng ◽  
Yefan Zhou ◽  
Xiaoqing Li ◽  
Hongyu Kang ◽  
...  
Keyword(s):  
Financial Crisis ◽  
Stock Market ◽  
Systemic Risk ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Spillover Effect ◽  
Industrial Sectors ◽  
Risk Contribution ◽  
The Global Financial Crisis ◽  
Over Time

This paper investigates the risk contribution of 29 industrial sectors to the China stock market by using one-factor with Durante generator copulas (FDG) and component expected shortfall (CES) analyses. Risk contagion between the systemically most important sector and other sectors is examined using a copula-based ∆CoVaR approach. The data cover the 2008 global financial crisis and the beginning of the COVID-19 pandemic. The empirical results show that the banking sector contributed most to systemic risk before and during the global financial crisis. Nonbank finance became equally important in 2020, and the COVID-19 pandemic promoted the position of the computer and pharmaceuticals sectors. The spillover effect diminishes over time, but there remains risk contagion between sectors. The risk spillover trend is consistent with that of systemic risk.

scholarly journals Monetary Policy, Industry Heterogeneity and Systemic Risk—Based on a High Dimensional Network Analysis

2019 ◽  
Vol 11 (22) ◽  
pp. 6222
Author(s):  
Su ◽  
Huang ◽  
Drakeford
Keyword(s):  
Monetary Policy ◽  
Systemic Risk ◽  
High Dimensional ◽  
Risk Sensitivity ◽  
Return On Assets ◽  
Leverage Ratio ◽  
Energy Material ◽  
Dimensional Network ◽  
Risk Contribution ◽  
Book To Market Ratio

We utilized a high dimensional financial network to investigate the systemic risk contagion between different industries in China and to explore the impacts of monetary policy and industry heterogeneity factors. The empirical results suggest that the total level of systemic risk increased quite significantly during the 2008 global crisis and the 2015–2016 Stock Market Disaster. The energy, material, industrial, and financial sectors are the top systemic risk contributors. Industry heterogeneity variables such as the leverage ratio, book-to-market ratio, return on assets (ROA) and size have significant impacts on the systemic risk, but their effects on the systemic risk contribution are more pronounced than those on the systemic risk sensitivity. Moreover, monetary policy can effectively suppress the systemic risk diffusion derived from the leverage ratio. These results are essential for investors and regulators of risk management.

scholarly journals The Founding of the Federal Reserve, the Great Depression, and the Evolution of the U.S. Interbank Network

2019 ◽  
Vol 80 (1) ◽  
pp. 69-99 ◽  
Author(s):  
Matthew Jaremski ◽  
David C. Wheelock
Keyword(s):  
Great Depression ◽  
Federal Reserve ◽  
Systemic Risk ◽  
Important Determinant ◽  
Survival Rates ◽  
Financial Network ◽  
The Great Depression ◽  
Key Events ◽  
The U.S ◽  
Over Time

Financial network structure is an important determinant of systemic risk. This article examines how the U.S. interbank network evolved over a long and important period that included two key events: the founding of the Federal Reserve and the Great Depression. Banks established connections to correspondents that joined the Federal Reserve in cities with Fed offices, initially reducing overall network concentration. The network became even more focused on Fed cities during the Depression, as survival rates were higher for banks with more existing connections to Fed cities, and as survivors established new connections to those cities over time.

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