Systemic risk : a practitioner's guide to measurement, management and analysis

Intro -- Systemic Risk -- Preface -- Acknowledgements -- Contents -- List of Figures -- List of Tables -- List of Boxes -- 1 Introduction -- References -- 2 Systemic Risk and the Financial System -- 2.1 Reasons for Adopting Broader Definitions of Systemic Risk -- 2.2 Reasons for Narrowing the Definition -- 2.3 Interconnectedness and Domino Effects -- 2.4 Hidden Vulnerabilities and Tsunamis -- 2.5 Systemic Risk and Political Risk -- 2.6 Systemic Risk and Societal Change -- 2.7 Financial Stability -- 2.8 Procyclicality -- 2.9 Macroprudential Policy -- 2.10 Key Takeaways -- References -- 3 Overall Features of the Financial System -- 3.1 What Predisposes the Financial System to Suffer from Systemic Risk? -- 3.1.1 Introduction -- 3.1.2 Too Big to Fail (TBTF) -- 3.1.3 The 'Domino' Model of Systemic Risk -- 3.1.4 The 'Tsunami' Model of Systemic Risk -- 3.1.5 The 'Combined' Model of Systemic Risk -- 3.1.6 Regulatory Forbearance -- 3.1.7 Viewing the 2007-09 Credit Crisis Through a 'Combined' Model Lens -- 3.1.8 Financial Services that are Critical to the Real Economy -- 3.1.9 Economic Importance -- 3.2 Financial Sector Regulation -- 3.2.1 Introduction -- 3.2.2 Overarching Political Considerations -- 3.2.3 The Legal Form of Financial Sector Regulation -- 3.2.4 Supervisory Actions -- 3.2.5 Recovery and Resolution -- 3.2.6 Compensation and Protection Schemes -- 3.2.7 Conduct Regulation -- 3.3 Regulatory Capital and Economic Capital -- 3.3.1 Introduction -- 3.3.2 Risk-Sensitive Capital Requirements -- 3.3.3 Regulatory Capital Requirements -- 3.3.4 The Structure of Regulatory Frameworks -- 3.3.5 Regulatory Arbitrage -- 3.4 Accounting -- 3.4.1 Introduction -- 3.4.2 Fair valuation and other valuation approaches -- 3.4.3 Impact of accounting standards on capital requirements -- 3.4.4 IFRS 9 -- 3.4.5 Going Concern Versus Gone Concern -- 3.4.6 TLAC and MREL.