United Kingdom: Financial Sector Assessment Program-Systemic Risk and Interconnectedness Analysis-Technical Note
IMF Staff Country Reports, June 17, 2016
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- United Kingdom: Financial Sector Assessment Program-Systemic Risk and Interconnectedness Analysis-Technical Note
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Bibliographic details
- Published: June 17, 2016
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484394281.002
Scope and purpose
- Summarizes the assessment of interconnectedness and systemic risk undertaken for the U.K. financial system as part of the Financial Sector Assessment Program.
- Emphasizes that the assessment of financial system resilience should account for the evolution of interconnectedness between firms and sectors.
Structure of the paper
- Part (1): Motivation for monitoring cross-sector interconnectedness as part of the financial system’s resilience assessment.
- Part (2): Description of selected empirical methods that may be employed to analyze interconnectedness.
- Part (3): An illustrative analysis conducted, based on a definition of the financial system that incorporates U.K. banking and life insurance sectors.
Key thematic findings and emphases
- Monitoring cross-sector interconnectedness is presented as an integral element of assessing financial system resilience.
- Empirical methods for analyzing interconnectedness are described (selected methods, as opposed to an exhaustive list).
- An illustrative, applied analysis is provided that defines the financial system to include U.K. banking and life insurance sectors.
Subjects and keywords (as listed)
- Subjects: 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.
Content in this bundle
- Executive Summary