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Financial Stability Paper No. 35: Measuring the macroeconomic
Financial Stability Paper No. 35: Measuring the macroeconomic

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... lenders, and that it repays this debt in no-crisis times by taxing solvent domestic firms. In the extended appendix, we present evidence on bailouts that supports these assumptions. Managers receive an exogenous share d of profits. The advantage of this assumption and of the overlapping generations ...
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... 58. Financial intermediaries can engage in credit risk transformation because they: A. obtain cost advantages owing to their size and business volumes transacted. B. can quickly convert financial assets into cash, close to the current market price. C. develop expertise in lending and diversifying l ...
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Systemic risk

In finance, systemic risk is the risk of collapse of an entire financial system or entire market, as opposed to risk associated with any one individual entity, group or component of a system, that can be contained therein without harming the entire system. It can be defined as ""financial system instability, potentially catastrophic, caused or exacerbated by idiosyncratic events or conditions in financial intermediaries"". It refers to the risks imposed by interlinkages and interdependencies in a system or market, where the failure of a single entity or cluster of entities can cause a cascading failure, which could potentially bankrupt or bring down the entire system or market. It is also sometimes erroneously referred to as ""systematic risk"".
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