Page 162 - PRIAA Glossary
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SYSTEMIC RISK
The risk that the default by one market participant will cause a cascading failure and will have repercussions on other participants due to the interlocking nature of global financial markets. It is a risk inherent to the collapse of an entire financial market or financial system.
SYSTEMICALLY IMPORTANT FINANCIAL INSTITUTIONS (SIFIS)
Financial institutions that risk triggering a global financial crisis should they fail. These institutions may be in such a position due to factors such as size, interconnectedness or unique position in the market.
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