The Influencing Factors, Formation Mechanism, and Countermeasures of Systemic Financial Risk

Senze Zheng ()
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Senze Zheng: International College, Jiangxi University of Finance and Economics

A chapter in Proceedings of the 2026 11th International Conference on Social Sciences and Economic Development (ICSSED 2026), 2026, pp 764-770 from Springer

Abstract: Abstract Navigating systemic financial risk represents one of the most pressing challenges to contemporary global financial stability. However, existing research has not yet fully illuminated the complete trajectory of this risk from its nascent accumulation to its eventual outbreak. This paper aims to bridge this gap by systematically reviewing the determinants, formation mechanisms, and countermeasures related to systemic financial risk. Integrating evidence from the macro, meso, and micro levels, it constructs a comprehensive analytical chain that traces the processes of risk accumulation, amplification, and contagion. The analysis reveals that systemic vulnerabilities originate from excessive leverage at the micro level, are subsequently magnified by procyclical dynamics within specific industries at the meso level, and are ultimately triggered by macroeconomic policy shifts or exogenous shocks. Consequently, effective risk prevention necessitates a multi-layered governance system capable of precise intervention at each stage of risk formation. The framework proposed herein offers both a conceptual map for understanding systemic risk and practical guidance for policymakers and market participants alike.

Keywords: Systemic financial risk; Determinants; Mechanism; Countermeasures; Multi-level governance (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6239-701-9_79

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DOI: 10.2991/978-94-6239-701-9_79

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