/

Financial stability (insurers and pension funds) [6]

Go to: Summary | Previous | Next   
Bullet points include: Banks Insurers. Monetary role industry mainly fulfils A means of payment in exchange for goods and services. A store of value, permitting deferred consumption and smoothing. Other roles Financial services Risk pooling. Comparative advantage Screen and finance short-term projects (As investors) invest long-term and gain from illiquidity premium. Core business activities Largely asset-driven, often supported by leveraged balance sheets Mainly liability-driven, less leveraged and often less exposed to ‘runs’. Exposure to systemic risk from any one firm? Higher Lower. Risk that safety net costs fall on government? Higher (more ‘essential’ to current economic activity). Lower. Source: Nematrian and Kemp (2017).  Systemic risk: A Practitioner’s Guide to Measurement, Management and Analysis

NAVIGATION LINKS
Contents | Prev | Next | Library


Desktop view | Switch to Mobile