structural characteristics of Korean repo markets and proposes the introduction of CCPs as a way to mitigate systemic risk. To … capital through netting in multilateral transactions, and they can mitigate the effects of risk transfer by isolating … counterparty risk during periods of turbulence. In Korea, the latter effect is expected to play a pivotal role in mitigating …

In summer 2011, elevated sovereign risk in Eurozone peripheral countries increased the solvency risk of Eurozone banks … funding pressure for banks, but did not help to contain sovereign risk. In fact, banks of the peripheral countries used the … public funds to increase their exposure to risky domestic debt, so that when solvency risk in the Eurozone worsened the run …

focus on individual, rather than systemic, risk of financial institutions. Focusing on systemically important assets and … capable of inducing market discipline and mitigating moral hazard, but also capable of addressing the associated systemic risk …, for instance, due to the risk of fire sales of collateral assets. Furthermore, because of our focus on SIALs, our proposed …

concentrates asset ownership with firms that have preferences to hold highly leveraged positions and risk default. The premium …