systemic risk


Definition of systemic risk

: 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

The systemic risk posed by Fannie and Freddie wasn’t an original insight. Michael Taylor,, "Rebuilding the Fanny-Freddie Frankenstein," 14 June 2019 But with a new presidential election less than 18 months away, glaring systemic risks remain. Lily Hay Newman, WIRED, "Election Security Is Still Hurting at Every Level," 6 June 2019 Beijing policy makers stepped in as concerns intensified over the health of Chinese investor balance sheets and systemic risks to the overall Chinese financial system. Dominique Fong, WSJ, "Chinese Investors Back Away From Global Property Markets," 1 Jan. 2019 Allowing these systemic risks to fester will only make a coastal real estate crash more cataclysmic. Patrick Sisson, Curbed, "Climate change and the coming coastal real estate crash," 16 Oct. 2018 Federal financial regulators have begun rolling out a plan to provide regulatory relief to smaller regional banks no longer considered a systemic risk, as part of a much larger deregulatory package recently passed by Congress. Tory Newmyer, Washington Post, "The Finance 202: Voters already fear economic pain from Trump's trade war," 9 July 2018 The financial supervision system will be improved to ensure financial stability and prevent systemic risk, the official Xinhua News Agency reported late Sunday, citing a decision by a Communist Party committee on deepening government reform., "China Plans Greater Economic Policy Coordination," 4 Mar. 2018 By late 2016, insurers had fallen under the spotlight as Chinese leaders tried to control capital outflows and began to openly fret that the financial system was building debt too rapidly and creating systemic risks. James T. Areddy, WSJ, "Fired Chinese Insurance Regulator Charged With Bribery, Abuse of Power," 16 Apr. 2018 Regulators have described Anbang’s blazing expansion as a potential systemic risk to the country’s financial system. Stella Yifan Xie, WSJ, "Anbang Insurance Founder’s Stunning Fall Ends With 18-Year Prison Term," 10 May 2018

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'systemic risk.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of systemic risk

1977, in the meaning defined above

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Last Updated

18 Jun 2019

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The first known use of systemic risk was in 1977

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More Definitions for systemic risk

systemic risk

sys·​tem·​ic risk | \ sis-ˈte-mik- How to pronounce systemic risk (audio) \

Legal Definition of systemic risk

: 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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