Search results
Results from the WOW.Com Content Network
Financial market infrastructure refers to systems and entities involved in clearing, settlement, and the recording of payments, securities, derivatives, and other financial transactions. [1] Depending on context, financial market infrastructure may refer to the category in general, or to individual companies or entities (thus also used in ...
A financial market must identify operational risks: both internally and across the market and its participants. Where appropriate, they should mitigate the risks through controls. [1] Systems used by the market must have a high degree of reliability and security, and must have sufficient capacity for the needs of the market. [1]
Section 804 of the Dodd–Frank Wall Street Reform and Consumer Protection Act (DFA) provides the Financial Stability Oversight Council (FSOC) the authority to designate a financial market utility (FMU) that it determines is or is likely to become systemically important because the failure of or a disruption to the functioning of the FMU could create, or increase, the risk of significant ...
As of November 2011 when the G-SIFI paper was released by the FSB, [5] a standard definition of N-SIFI had not been decided. [9] However, the BCBS identified [when?] factors for assessing whether a financial institution is systemically important: its size, its complexity, its interconnectedness, the lack of readily available substitutes for the financial market infrastructure it provides, and ...
In general, three types of financial supervisory architecture have been identified by scholars: a "sectoral" supervisory architecture (sometimes referred to as "institutional" or "functional"), in which different authorities are in charge of different sub-sectors of the financial system such as banking, insurance, and securities markets;
The purpose of the Financial Supervisory Service is to contribute to the growth of the national economy by 1) promoting the advancement of the financial industry and the stability of financial markets; 2) establishing sound credit order and fair financial transaction practices; and 3) protecting financial consumers, such as depositors.
In 2010 Shiller supported the idea that to fix the financial and banking systems, in order to avoid future financial crisis, banks need to issue a new kind of debt, known as contingent capital, that automatically converts into equity if the regulators determine that there is a systemic national financial crisis, and if the bank is ...
Macroprudential regulation is the approach to financial regulation that aims to mitigate risk to the financial system as a whole (or "systemic risk"). After the 2007–2008 financial crisis, there has been a growing consensus among policymakers and economic researchers about the need to re-orient the regulatory framework towards a macroprudential perspective.