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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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Macroprudential Limits on Mortgage Products: The Australian Experience

26 Jul 2021 RDP 2021-07
Nicholas Garvin, Alex Kearney and Corrine Rosé
APRA (2019b) describes the policies as ‘tactical, temporary constraints’, because they were designed to act fast and target the specific sources of systemic risk. ... It was replaced with longer-term tools for distinguishing between mortgage products
https://www.rba.gov.au/publications/rdp/2021/2021-07/full.html

Conclusions

1 Jul 2021 RDP 2021-07
Nicholas Garvin, Alex Kearney and Corrine Rosé
Commitments growth in the targeted mortgage products – products that were judged to be contributing to systemic risk at the time – dropped markedly, after growing strongly prior to the policies. ... Banks now charge higher spreads on the mortgage
https://www.rba.gov.au/publications/rdp/2021/2021-07/conclusions.html

The Credit Growth Limits

1 Jul 2021 RDP 2021-07
Nicholas Garvin, Alex Kearney and Corrine Rosé
The risk environment that led to the policies is described in most detail by RBA (2018). ... It was replaced with longer-term tools for distinguishing between mortgage products in their systemic risk contributions.
https://www.rba.gov.au/publications/rdp/2021/2021-07/the-credit-growth-limits.html

Introduction

1 Jul 2021 RDP 2021-07
Nicholas Garvin, Alex Kearney and Corrine Rosé
APRA (2019b) describes the policies as ‘tactical, temporary constraints’, because they were designed to act fast and target the specific sources of systemic risk. ... While conclusions about systemic stability are outside this paper's scope, the
https://www.rba.gov.au/publications/rdp/2021/2021-07/introduction.html

Non-technical summary for ‘Macroprudential Limits on Mortgage Products: The Australian Experience’

26 Jul 2021 RDP 2021-07
Nicholas Garvin, Alex Kearney and Corrine Rosé
APRA removed the limits when they felt there had been sufficient improvement in lending standards and the identified risks had subsided. ... The broad aim of macroprudential policy is to manage systemic risk in the financial sector.
https://www.rba.gov.au/publications/rdp/2021/2021-07/non-technical-summary.html