too-big-to-fail entities in the making. The present regulatory and reform efforts may not remove the systemic risk from …

The financial market turmoil of recent months has highlighted the importance of counterparty risk. Here, we discuss … counterparty risk that may stem from the OTC derivatives markets and attempt to assess the scope of potential cascade effects. This … risk is measured by losses to the financial system that may result via the OTC derivative contracts from the default of one …

risk; and (ii) should they be regulated more closely, and if so, how and to what extent? The paper begins with a basic … risk. It then reviews and evaluates some of the authorities'' proposed initiatives, and discusses some alternative …

The analysis of interconnectedness and contagion is an important part of the financial stability and risk assessment of …

Cyber risk is an emerging source of systemic risk in the financial sector, and possibly a macro-critical risk too. It … approaches to assess and monitor cyber risk to the financial sector, including various approaches to stress testing. The paper …

The growth-at-risk (GaR) framework links current macrofinancial conditions to the distribution of future growth. Its … GaR analysis, policymakers can quantify the likelihood of risk scenarios, which would serve as a basis for preemptive …

unhedged borrowers. This measure explicitly takes into account the indirect exchange rate risk that banks undertake when they … lend to borrowers that will not be able to repay in the event of a sharp depreciation. Such systemic risk taking is not …