systemic risk News

Private Credit’s Push for Retail Money Stokes New Vulnerability

Private credit’s rush to attract money from retail investors is making the sector more vulnerable to the kind of liquidity mismatches found in traditional lenders, the Bank for International Settlements warned in a report on Tuesday. Direct lenders usually provide …

Bank of England Finds Non-Bank Financial Firms Pose Wider Risks in Crisis Periods

Non-bank financial institutions such as hedge funds remain vulnerable to a sudden financial shock and would not all be able to access the funding they would need in such a crisis, the Bank of England said on Friday. Announcing the …

Possibility of a Billion-Dollar Systemic Cyber Event ‘Is Real’

A systemic event and the threat it could pose to insurers’ portfolios is not the million dollar question, but perhaps the billion dollar question, according to Norman Niami, immediate past chairperson and member of The American Academy of Actuaries. “It’s …

Viewpoint: Solving Systemic Risk Is the Cyber Market’s Number One Priority

The Grange Pub in Cardiff is a typical modern British tavern. A short stroll from the city centre, it’s busy most days of the week. Weekends are packed, especially for Sunday lunch. In March 2020 all that stopped. Government lockdown …

Lloyd’s Insurers Must Exclude Catastrophic State-Backed Cyber-Attacks

Lloyd’s insurers must exclude state-backed cyber-attacks in standalone (or affirmative) cyber policies if they reach a catastrophic threshold, according to a Lloyd’s market bulletin issued this week. However, the exclusion would include liability for losses arising from both war- and …

Canada’s Housing Downturn Among Biggest Financial System Risks, Regulator Warns

A housing market downturn in Canada is among the biggest risks facing the financial system this year, the country’s financial regulator said on Thursday, adding it plans to review the existing home loan stress test and expand its application to …

EU Regulators Call for Action to Catch Up to Potential Systemic Risk of Digital Finance

Rapid action is needed to update how cross-border financial services are scrutinized and consumers protected as the sector becomes digitalized with “Big Tech” playing an increased role, European Union regulators said on Monday. People are turning to social media and …

New Public-Private Consortium Aims to Develop Protection Against Systemic Risks

The Cambridge Centre for Risk Studies (CCRS) at the University of Cambridge Judge Business School is launching a new research consortium that aims to find ways to protect society against future systemic risks. Funding will be provided by an international …

Regulators Warn of Climate Change, Stablecoins as Systemic Financial Risks

Climate change, the rapid growth of “stablecoins” and financial innovations that led to frenzied trading of GameStop Corp shares early this year are threats to the U.S. financial system that merit closer scrutiny, a Treasury Department-led regulatory panel said on …

UK’s Pool Re Launches Advisory Group to Develop Public-Private Solutions for Systemic Risks

Pool Re, Britain’s leading terrorism reinsurer, announced the launch of “Re:New,” an advisory group that will explore how to protect the UK economy from systemic risks. Re:New will unite experts from insurance, government, industry, academia and beyond to explore how …