THE CONCEPT AND DETERMINANTS OF SYSTEMIC RISK- AN OVERVIEW

Laura Vasilescu
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Laura Vasilescu: University of Craiova Faculty of Economics and Business Administration

Annals of University of Craiova - Economic Sciences Series, 2019, vol. 2, issue 47, 223-228

Abstract: Systemic risk is a fundamental concept for studying the level of financial instability and the possible ways of counteracting this phenomenon. In order to define the systemic risk within the financial systems, it is necessary to clarify some concepts that contribute to the outline of the systemic risk profile and to analyse its main components: the shock and the propagation mechanisms. Also, the concept of systemic risk must take into account its two dimensions: temporal, ie procyclicality, and structural, that is, the risk distribution in the system. Recent developments demonstrate the actuality of the systemic risk concept and in the same time, the gaps that persist in its approach. Therefore, defining the determinant elements, establishing the implications that the systemic risk generates within the financial system represent the prerequisites of effective measures in order to prevent and annihilate the consequences this can generate at the level of institutions, sectors or even economies as a whole.

Keywords: systemic risk; financial crisis; determinant factors; effects (search for similar items in EconPapers)
JEL-codes: F30 G20 O16 (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:aio:aucsse:v:2:y:2019:i:47:p:223-228

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