IMF Staff Country Reports

United Kingdom: Financial Sector Assessment Program-Systemic Risk and Interconnectedness Analysis-Technical Note

June 17, 2016

Download PDF

Preview Citation

Format: Chicago

United Kingdom: Financial Sector Assessment Program-Systemic Risk and Interconnectedness Analysis-Technical Note, (USA: International Monetary Fund, 2016) accessed December 21, 2024

Summary

This paper summarizes the assessment of interconnectedness and systemic risk undertaken for the U.K. financial system as part of the Financial Sector Assessment Program. It consists of three parts, focusing on the following: (1) motivation for monitoring cross-sector interconnectedness as part of the financial system’s resilience assessment, (2) description of selected empirical methods that may be employed to analyze interconnectedness, and (3) an illustrative analysis conducted, based on a definition of the financial system that incorporates U.K. banking and life insurance sectors. The assessment of financial system resilience should account for the evolution of interconnectedness between firms and sectors.

Subject: Banking, Commercial banks, Financial contagion, Financial institutions, Financial sector policy and analysis, Insurance companies, Spillovers, Systemic risk

Keywords: Asset price dislocation, Balance sheet interconnectedness, Banking sector, Banking sector resilience, Banking sector stress tests, CDS spread, Commercial banks, CR, Euro area banking sectors, Financial contagion, Financial system, Global, Insurance companies, ISCR, Lending market, Modeling portfolio risk, Spillovers, Systemic risk, U.K. export trade weight, U.K. financial system

Publication Details

  • Pages:

    21

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Country Report No. 2016/164

  • Stock No:

    1GBREA2016012

  • ISBN:

    9781484394281

  • ISSN:

    1934-7685

You May Also Be Interested In...

Industrialization and the Big Push: Theory and Evidence from South Korea

December 20, 2024

Ukraine: Sixth Review Under the Extended Arrangement Under the Extended Fund Facility, Requests for Modification of a Performance Criterion, and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for Ukraine

December 20, 2024

Islamic Republic of Mauritania: Selected Issues

December 20, 2024

Ecuador: Selected Issues

December 19, 2024