The
Definition Of

Systematic Risk

Systematic Risk is the risk that the failure of one participant in a payment or settlement system, or in financial markets generally, to meet its required obligations when due will cause other participants or financial institutions to be unable to meet their obligations (including settlement obligations in a payment and settlement system) when due.

Share it:

More from this Section

  • Automated Banking Machines (ABMs)
    Automated Banking Machines (ABMs) are terminals that allow bank customers to perform many everyday banking tasks, e.g., deposits,
  • Financial engineering
    Financial engineering refers to those basic building blocks, such as spot positions, forwards, and options, used to construct positions that provide the user ...
  • Equal Credit Opportunity Act
    Equal Credit Opportunity Act is the legislation passed by the U.S. Congress in 1974 that prohibits lenders from asking certain questions of a borrowing customer, such as his or her age, race, or religion, and
  • Direct Deposit
    Direct deposit lets the user authorize specific deposits, such as paychecks and social security checks, to his account on a regular basis.
  • At-The-Money, In-The-Money & Out-of-The-Money
    An option whose exercise price is the same as the spot price of the underlying currency is said to be at-the-money (ATM). An option that would be profitable ...
  • Main refinancing operations
    Main refinancing operations is the weekly reverse transactions (purchase or sale of eligible assets under repurchase agreements or
  • Drawee
    Drawee is the individual or entity on whom a draft is drawn.