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

  • Value Date
    Value Date is the date on which foreign exchanges bought and sold have to be delivered and the prices payable for them in local currency have to
  • Futures
    Futures Contracts to buy something in the future at a price agreed upon in advance. First developed in the agriculture commodity markets but
  • Sources and Uses of Funds Statement
    Sources and Uses of Funds Statement is the financial reports on a business customer showing changes in assets and liabilities over in
  • Beta
    Beta is the second letter of Greek alphabet, used as a statistical measure of risk in the Capital Asset Pricing Model. Beta is the covariance returns on a given ...
  • Annuitize
    Annuitize is to commence a series of payments from the capital that has accumulated in an annuity. The payments may be a fixed amount, for a fixed period
  • Consumption function
    Consumption function is the relationship between disposable income and consumer expenditure.
  • Repurchase agreement (repo)
    Repurchase agreement (repo) is an arrangement whereby the Fed, or another party, purchases securities with the understanding that the seller will repurchase them in