systemic risk
nounDefinition of systemic risk
: the risk that the failure of one financial institution (such as a bank) could cause other interconnected institutions to fail and harm the economy as a whole
Examples of systemic risk in a Sentence
Recent Examples on the Web
In China, for example, where Facebook does not conduct business, central bankers on Monday released a list of concerns about Libra’s global systemic risks and potential spillover effects, according to Bloomberg. — Gregory Barber, WIRED, "The Fed Chair Says Facebook's Libra Raises 'Serious Concerns'," 10 July 2019 Regulators have described Anbang’s blazing expansion as a systemic risk to the country’s financial system. — Chao Deng, WSJ, "To Sort Anbang’s Assets, Chinese Authorities Create Dajia," 28 June 2019 At the very least, governments need to proceed slowly and carefully when new products may introduce systemic risks into our environment. — Jennifer Grygiel, The Conversation, "With cryptocurrency launch, Facebook sets its path toward becoming an independent nation," 18 June 2019 But nuclear diplomats aren’t in a position to privately rake in billions by dialing up systemic risks. — Rob Reid, Ars Technica, "Ars on your lunch break: The fate we might be making for ourselves," 18 June 2019 The systemic risk posed by Fannie and Freddie wasn’t an original insight. — Michael Taylor, ExpressNews.com, "Rebuilding the Fanny-Freddie Frankenstein," 14 June 2019 But with a new presidential election less than 18 months away, glaring systemic risks remain. — Lily Hay Newman, WIRED, "Election Security Is Still Hurting at Every Level," 6 June 2019 Beijing policy makers stepped in as concerns intensified over the health of Chinese investor balance sheets and systemic risks to the overall Chinese financial system. — Dominique Fong, WSJ, "Chinese Investors Back Away From Global Property Markets," 1 Jan. 2019 Allowing these systemic risks to fester will only make a coastal real estate crash more cataclysmic. — Patrick Sisson, Curbed, "Climate change and the coming coastal real estate crash," 16 Oct. 2018These example sentences are selected automatically from various online news sources to reflect current usage of the word 'systemic risk.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
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More Definitions for systemic risk
systemic risk
noun
sys·tem·ic risk
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Legal Definition of systemic risk
: the risk that the failure of one financial institution (as a bank) could cause other interconnected institutions to fail and harm the economy as a whole