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THE NATURE OF SYSTEMIC RISKS, THEIR CONCEPT AND REGULATION

I. Shaker, N. Kondrakhina

Abstract

Background: Modern studies of the concept of systemic risk presuppose an answer to the main questions: as a systemic risk is defined in the scientific literature and central banks; what is the content of "systemic risk" and what factors are involved in its accumulation; what is "infection" and how does it relate to systemic risk Methods: Central banks rarely suggest a definition of systemic risk. The review of S. Usterlu and J. de Hahn shows that central banks often focus on clarifying definitions of financial instability and define systemic risks narrowly, through a threat to the financial system (National Bank of the Czech Republic, Bank of Canada, Bank of Sweden) or inability to fulfill obligations in the payment system, which leads to its deterioration (Bank of Luxembourg, Bank of Greece). In this regard, the Bank of Russia's approach to the concept of systemic risks and their regulation is of interest Results: Experts of the British Center for Systemic Risk (Systemic Risk Centre, SRC) focus on four aspects of the concept of "systemic riskВ»: 1. SRC believes that systemic risk mainly arises from endogenous risk. 2. The outbreak of systemic crises is usually caused by a small event, the impact of which is exacerbated by the links within the financial system -- mechanisms for strengthening (Amplification mechanism):. 3. There are two main channels, through which destructive mechanisms of acceleration act: 1) financial channels; 2) political and legal channels 4. Regulators should focus on strategic initiatives that will reduce systemic risks by leveling their education. Conclusions: To date, there are two types of concept of systemic risk: 1"two-level" definition of systemic risk, which gives the ECB. Systemic risk is the risk occurrence of a system event. Systemic events can be understood as the spread of financial instability to the extent that the financial intermediation process is deteriorating, and economic growth and welfare are severely affected. .2. Systemic risks are the risks of misalignments in asset prices and the interrelationships between different elements of the financial system, through which infection can spread.

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DOI resolver: doi.org/10.5593/sgemsocial2018/1.3/S03.050

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