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RBA Glossary definition for systemic risks
systemic risks – Events which may jeopardise financial system stability and cause harm to the real economy. For example, the Y2K problem was regarded as such a risk. They may include the risk that the failure of one participant in a payments system, or in financial markets generally, to meet their required obligations when due, will cause other participants or financial institutions to be unable to meet their obligations (including settlement obligations in a transfer system) when due. Such a failure may cause significant liquidity or credit problems.
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Agency Costs, Balance Sheets and the Business Cycle
30 Nov 2009
RDP
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114KB
As a result, depositors face a potential risk similar tothat outlined in Diamond and Dybvig (1983). ... In practice, such considerationsmay be important. The firm's owners can diversify risk by holding shares of manycompanies.
https://www.rba.gov.au/publications/rdp/1993/pdf/rdp9311.pdf
Emergency Liquidity Injections
3 Oct 2019
RDP
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2093KB
This reduces banks’ losses on illiquid securities without incentivising more liquidity risk-taking. ... 11. liquidity-rich authority, interventions tend to have low risk relative to returns.
https://www.rba.gov.au/publications/rdp/2019/pdf/rdp2019-10.pdf
The Impact of Payment System Design on Tiering Incentives
28 Jan 2015
RDP
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862KB
While the focus in this paper is on credit and concentration risk, other risks that can arise from tiering include:. ... risk. On the other hand, the results suggest that both liquidity savings and risks would increase significantly if institutions above
https://www.rba.gov.au/publications/rdp/2012/pdf/rdp2012-06.pdf
Liquidity Shocks and the US Housing Credit Crisis of 2007–2008
2 Feb 2015
RDP
PDF
756KB
Geographiclocation is therefore potentially a significant determinant of credit risk in homemortgage lending. ... regardless of the perceived risk of the borrowers (Giannetti andLaeven 2012; De Haas and Van Horen 2012).
https://www.rba.gov.au/publications/rdp/2013/pdf/rdp2013-05.pdf
Housing and Housing Finance: The View from Australia and Beyond
8 Jan 2007
RDP
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278KB
markets, and particularly innovations in funding and risk management, had resulted in a substantial expansion in the supply of mortgage loans. ... loans. It is well-known that lending markets involve information asymmetries, so lenders do not know
https://www.rba.gov.au/publications/rdp/2006/pdf/rdp2006-12.pdf
The Origin of the Asian Financial Turmoil
1 Dec 2009
RDP
PDF
451KB
South Korea [An exit policy] to ensure the rapid resolution of troubled financial institutions in amanner which minimises systemic distress and avoids moral hazard … the restructuringand recapitalisation of all banks that ... Secondly, the long-running
https://www.rba.gov.au/publications/rdp/1998/pdf/rdp9805.pdf
Australian Banking Risk: The Stock Market’s Assessment and the Relationship Between Capital and Asset Volatility
1 Dec 2009
RDP
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458KB
References 52. AUSTRALIAN BANKING RISK: THE STOCK MARKET’SASSESSMENT AND THE RELATIONSHIP BETWEEN. ... 11. Financial risk is aligned with the bank’s leverage. Regardless of the proclivity ofbanks to take risks, exogenous events can result in banks
https://www.rba.gov.au/publications/rdp/1999/pdf/rdp1999-09.pdf
Measuring Traded Market Risk: Value-at-risk and Backtesting Techniques
1 Dec 2009
RDP
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400KB
MEASURING TRADED MARKET RISK: VALUE-AT-RISK ANDBACKTESTING TECHNIQUES. Colleen Cassidy and Marianne Gizycki. ... Hence, risks across differentinstruments, traders and markets can be readily compared and aggregated.
https://www.rba.gov.au/publications/rdp/1997/pdf/rdp9708.pdf
Australian Money Market Divergence: Arbitrage Opportunity or Illusion?
12 Sep 2019
RDP
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1464KB
for their overall risk-weighted equity ratio:. 1-. tt. t. Total EquityCET Ratio. ... In our analysis, risk. weights are driven by two key factors (Table 1).
https://www.rba.gov.au/publications/rdp/2019/pdf/rdp2019-09.pdf
Does Monetary Policy Affect Non-mining Business Investment in Australia? Evidence from BLADE
7 Jan 2024
RDP
PDF
1715KB
While several explanations. have been put forward, such as risk aversion and uncertainty, or pessimism about future outcomes.
https://www.rba.gov.au/publications/rdp/2023/pdf/rdp2023-09.pdf