Management of Risks to Financial Stability from the Perspective of a Central Bank
This article investigates the main issues pertaining to a central bank’s concerns relative to financial stability, as seen from the perspective of risks, sources and key ways of action. At macroeconomic level, central banks need to identify and monitor the risk that m...
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| Format: | Article |
| Language: | English |
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Universitaria Publishing House
2016-11-01
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| Series: | Finanţe: Provocările viitorului |
| Subjects: | |
| Online Access: | http://financejournal.ro/fisiere/revista/38261990018-015.pdf |
| _version_ | 1811227316859174912 |
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| author | Gabriela Lățea |
| author_facet | Gabriela Lățea |
| author_sort | Gabriela Lățea |
| collection | DOAJ |
| description | This article investigates the main issues pertaining to a central bank’s concerns relative to financial stability, as seen from the perspective of risks, sources and key ways of action. At macroeconomic level, central banks need to identify and monitor the risk that market operators face payment default towards local entities (companies, households, government) and/or foreign creditors. Moreover, central banks entrusted with supervisory and licensing tasks are
also carefully examining the various risks threatening banks, be they credit risk, liquidity risk, market risk, or risks
associated with exposure concentration and distribution.
On financial markets, prices, profit margins, interest rates, net exposure to certain financial instruments must be monitored to be able to identify build - ups of risks, stress and significant drawbacks to its adequate functioning. Adding to these is the Contingent Claims Analysis (CCA1), which involves oversight and assessment of risks in various sectors as well as of the needs to counter them, by drawing on the real market data to identify the probability of default in one sector or another and the impact on other sectors in an integrated manner. |
| first_indexed | 2024-04-12T09:40:38Z |
| format | Article |
| id | doaj.art-f72ea5d545da4bc7b201d9366508a59c |
| institution | Directory Open Access Journal |
| issn | 1583-3712 1583-3712 |
| language | English |
| last_indexed | 2024-04-12T09:40:38Z |
| publishDate | 2016-11-01 |
| publisher | Universitaria Publishing House |
| record_format | Article |
| series | Finanţe: Provocările viitorului |
| spelling | doaj.art-f72ea5d545da4bc7b201d9366508a59c2022-12-22T03:38:06ZengUniversitaria Publishing HouseFinanţe: Provocările viitorului1583-37121583-37122016-11-01118132140Management of Risks to Financial Stability from the Perspective of a Central BankGabriela Lățea0The Romanian AcademyThis article investigates the main issues pertaining to a central bank’s concerns relative to financial stability, as seen from the perspective of risks, sources and key ways of action. At macroeconomic level, central banks need to identify and monitor the risk that market operators face payment default towards local entities (companies, households, government) and/or foreign creditors. Moreover, central banks entrusted with supervisory and licensing tasks are also carefully examining the various risks threatening banks, be they credit risk, liquidity risk, market risk, or risks associated with exposure concentration and distribution. On financial markets, prices, profit margins, interest rates, net exposure to certain financial instruments must be monitored to be able to identify build - ups of risks, stress and significant drawbacks to its adequate functioning. Adding to these is the Contingent Claims Analysis (CCA1), which involves oversight and assessment of risks in various sectors as well as of the needs to counter them, by drawing on the real market data to identify the probability of default in one sector or another and the impact on other sectors in an integrated manner.http://financejournal.ro/fisiere/revista/38261990018-015.pdfris ksfinancial stabil it ycentral bank |
| spellingShingle | Gabriela Lățea Management of Risks to Financial Stability from the Perspective of a Central Bank Finanţe: Provocările viitorului ris ks financial stabil it y central bank |
| title | Management of Risks to Financial Stability from the Perspective of a Central Bank |
| title_full | Management of Risks to Financial Stability from the Perspective of a Central Bank |
| title_fullStr | Management of Risks to Financial Stability from the Perspective of a Central Bank |
| title_full_unstemmed | Management of Risks to Financial Stability from the Perspective of a Central Bank |
| title_short | Management of Risks to Financial Stability from the Perspective of a Central Bank |
| title_sort | management of risks to financial stability from the perspective of a central bank |
| topic | ris ks financial stabil it y central bank |
| url | http://financejournal.ro/fisiere/revista/38261990018-015.pdf |
| work_keys_str_mv | AT gabrielalatea managementofriskstofinancialstabilityfromtheperspectiveofacentralbank |