Sources of Structural Systemic Risk in the Financial System: Identification and Measurement

On 3 July 2019 Česká Národní Banka will host a workshop on “Sources of structural systemic risk in the financial system: identification and measurement”, organised jointly with the ECB’s Macroprudential Analysis Group and the ESRB’s Analysis Working Group. Preventing and mitigating systemic risk is a key objective for macroprudential authorities. The structural dimension of systemic risk encompasses characteristics of the financial sector that can make it more vulnerable to adverse financial shocks and amplify their effects. Structural systemic risks may arise from factors such as interconnectedness among financial institutions through direct and indirect exposures, moral hazard and misaligned incentives, or banking sector size and concentration. Quantitative methods for identifying and measuring structural systemic risks are crucial to inform and guide macroprudential policy decisions.