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Systemic risk is the risk due to:

(i)    Failure of a bank, which is not adhering to regulations

(ii)    Failure of two banks simultaneously due to bankruptcy of one bank

(iii)    Where a group of banks fail due to contagion effect

(iv)    Failure of entire banking system

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Question added by Vinod Jetley , Assistant General Manager , State Bank of India
Date Posted: 2015/01/25
Ismail Mamoojee
by Ismail Mamoojee , Group Compliance Officer , Liberty

IV generally a systemic risk is the action of a Bank which can have an effect on the entire industry.

Deleted user
by Deleted user

Thank you for your question

 

 

(iv) Failure of entire banking system

FITAH MOHAMED
by FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

 

I think both

(iii)    Where a group of banks fail due to contagion effect

&

(iv)    Failure of entire banking system

are correct 

Systemic risk the risk resulting from the impact of the external market and internal factors that lead not sure of securities invested returns

The comprehensiveness of these risks are not limited to a particular sector or a particular activity

Ibrahim Hussein Mayaleh
by Ibrahim Hussein Mayaleh , Sales & Business Consultant and Trainer , Self-employed

I believe it is (IV)

Deleted user
by Deleted user

I have no idea at all.

Usman Naeem Khokhar
by Usman Naeem Khokhar , Growth Hacker (Itchy Fingerz) , NetSol Technologies

I am not very familiar with banking but thanks for the A2A,

 

I believe its Where a group of banks fail due to contagion effect

souha safir
by souha safir , إدارية , قطاع التربية

(iv)

Divyesh Patel
by Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town

Answer is option4

Mostafa Amin
by Mostafa Amin , Webmaster , Self Employed

am not pro in financial thx4 invite

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

No difference of opinion   --     answer option  (iv)   >>>>>>>>>    Failure of entire banking system.

Same answer as others which is choice (IV)

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