systemic risk

noun

: the risk that the failure of one financial institution (such as a bank) could cause other interconnected institutions to fail and harm the economy as a whole

Examples of systemic risk in a Sentence

Recent Examples on the Web
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As the economy expands, Fink said corporate earnings will do well and despite assets valuations and some geopolitical issues, the market isn’t facing any real systemic risk. Bloomberg, Orange County Register, 2 Oct. 2024 Again, the idea that nobody was regulating systemic risk prior to the creation of FSOC, in a holistic way or any other way, is undeniably false. Norbert Michel, Forbes, 2 Oct. 2024 Remember that systemic risk comes primarily from inadequate banking capital. Kristine Gill, Fortune, 3 Sep. 2024 Content by this author: Beijing’s Debt Dilemma China’s ballooning corporate debt remains the number one systemic risk to global economic recovery. Edoardo Campanella, Foreign Affairs, 10 June 2024 See all Example Sentences for systemic risk 

Word History

First Known Use

1977, in the meaning defined above

Time Traveler
The first known use of systemic risk was in 1977

Dictionary Entries Near systemic risk

Cite this Entry

“Systemic risk.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/systemic%20risk. Accessed 22 Dec. 2024.

Legal Definition

systemic risk

noun
sys·​tem·​ic risk sis-ˈte-mik- How to pronounce systemic risk (audio)
: the risk that the failure of one financial institution (as a bank) could cause other interconnected institutions to fail and harm the economy as a whole
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