SYSTEMIC RISK IN POST-CRISIS FINANCIAL MARKETS

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F26138077%3A_____%2F19%3A%230000918" target="_blank" >RIV/26138077:_____/19:#0000918 - isvavai.cz</a>

Result on the web

<a href="http://dx.doi.org/10.37355/03.2019/2" target="_blank" >http://dx.doi.org/10.37355/03.2019/2</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.37355/03.2019/2" target="_blank" >10.37355/03.2019/2</a>

Result language

angličtina

Original language name

SYSTEMIC RISK IN POST-CRISIS FINANCIAL MARKETS

Original language description

The global financial crisis that started in 2007 represented a striking example of under-estimating risks of systemic nature. Both the academic research and the financial market regulation had overly focused on individual institutions’ risks in pre-crisis years. However, they had underestimated the risks across individual markets and financial institutions as well as their potential impact on asset prices. Moreover, risks were underestimated in terms of the macro-economically and financially stable economic environment, i.e. low-volatility and prosperous economic environment. This had resulted in strong risk appetite, and low risk aversion leading to overly low risk premiums, consequently causing optimistic expectations with regard to the future development of returns and general economic performance. Both international and national authorities responded to global financial crisis by plethora of regulatory changes. Systemic risk was acknowledged and macroprudential policies were instituted. Although the regulatory and economic/political response to the crisis mitigated number of problems, it likely failed to address fully the sources of systemic risk. First, it is because the regulatory overhaul focused primarily on the banking sectors opening thus avenues for systemic risk in other sectors. Second, some new sources of systemic risks emerged often associated with accommodative monetary policies of central banks.

Czech name

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Czech description

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Type

B - Specialist book

CEP classification

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OECD FORD branch

50200 - Economics and Business

Project

<a href="/en/project/GA16-21506S" target="_blank" >GA16-21506S: New Sources of Systemic Risk in the Financial Markets</a><br>

Continuities

P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Publication year

2019

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

ISBN

9788074082009

Number of pages

154

Publisher name

University of Finance and Administration

Place of publication

Prague

UT code for WoS book

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