Systemically
in sentence
123 examples of Systemically in a sentence
Banks on the list must keep higher reserves, and maintain more liquidity, reflecting their status as
systemically
important institutions.
Sometimes they simply lose patience with the difficulty of agreeing on changes in negotiations that involve 28 countries, which seems especially true of financial reform, given that many of these countries are not home to
systemically
important banks and probably never will be.
In the UK, a Financial Policy Committee within the Bank of England is to monitor the “systemic risk” of financial failure, with a Prudential Regulatory Authority supervising
systemically
important institutions.
A Greek default would threaten to sink them, too, for it would raise immediate concerns about the solvency of Europe’s
systemically
important banks and insurance companies.
And, if the problem is
systemically
risky derivatives trading in banks and elsewhere, then the priority given to derivatives traders over nearly every creditor ought to be curtailed.
He recognizes that the ratio might reasonably be shaded up for
systemically
important banks, those famously dubbed “too big to fail.”
Moreover, the IMF’s share in crisis countries’ total external debt has reached unprecedented and
systemically
problematic levels.
If the crisis occurs in a
systemically
important economy – such as the US or Europe (emerging economies' two largest external markets) – the result is a global shortage of aggregate demand.
Entering the crisis, the International Monetary Fund was underfunded, and it continues to lack credibility and trust in certain
systemically
important parts of the world.
The consequences of the lack of a common treasury first became apparent after the bankruptcy of Lehman Brothers in 2008, when governments, in order to prevent financial markets from collapsing, had to guarantee that no other
systemically
important financial institution would be allowed to fail.
Though many Middle East countries remain highly unstable, none of them is
systemically
important in financial terms, and no conflict so far has seriously shocked global oil and gas supplies.
Economic-growth rates in other
systemically
large countries, including Turkey and Mexico, have risen as well, despite European and US headwinds.
To make matters worse, this occurred at a time when
systemically
important emerging economies hit their “developmental breakout phase,” powered by trade and other aspects of globalization.
Indeed, that component’s absence was behind this summer’s spreading financial crisis, which moved beyond small, peripheral countries like Greece, Ireland, and Portugal to strike
systemically
important countries like Italy and Spain.
Finally, some observers – although relatively few at this point – argue that the biggest banks have greatly improved their control and compliance systems, and that the mismanagement of risk on a
systemically
significant scale is no longer possible.
That is why it is important to maintain some flexibility, to allow currently unregulated institutions like hedge funds and private-equity funds to be swept into the regulatory net if they become large and
systemically
important.
In fact, a growing number of
systemically
important countries have taken measures that are undermining the Fund and the Bank, albeit largely inadvertently.
For starters,
systemically
important but not sufficiently open countries – beginning with China – should liberalize their economies more rapidly (particularly by reducing non-tariff barriers) and adhere to internationally accepted norms on intellectual property.
The IMF is working with the Financial Stability Board and other organizations to develop new principles and guidelines, including on capital, liquidity, leverage, interconnectedness,
systemically
important institutions, the “perimeter” of regulation, and the pro-cyclical nature of rules.
A study of such spillover effects by the International Monetary Fund suggests that, before the global financial crisis, external factors explained 36% of change in output in the five
systemically
important economies (the eurozone, the United States, China, Japan, and the United Kingdom); after the crisis, however, this share reached close to 60%.
LONDON – Obviously, the global financial crisis of 2008-2009 was partly one of specific,
systemically
important banks and other financial institutions such as AIG.
These include higher capital ratios for
systemically
important banks, stricter supervision, limits on trading activity, pre-designated resolution and recovery plans, and taxes aimed not at “getting our money back,” but at internalizing externalities – that is, making those at fault pay the social costs of their behavior – and creating better incentives.
Still others say that risk is increased not for the private sector as a whole but for
systemically
important institutions that are accustomed to short-term low-interest liabilities and long-term high-interest assets.
But when
systemically
vital firms overdose on repo, we all pay, first as taxpayers when the government bails them out, and then as we suffer from the resulting economic disruption and downturn.
So, at least on paper, Greece should not be a
systemically
important economy.
This is already the case in Greece, but the fate of the euro will be decided in the larger,
systemically
important countries like Italy and Spain.
Despite scandal after scandal, from money laundering and market manipulation to racial discrimination in lending and illegal foreclosures, no senior official has been held accountable; when financial penalties have been imposed, they have been far smaller than they should be, lest
systemically
important institutions be jeopardized.
The engagement of all stakeholders in sustained dialogue will be crucial, as will the imagination to think systemically, and beyond one’s own short-term institutional and national considerations.
Specifically, the Fund would need to complement its traditional core constituency of governments and other multilateral institutions (particularly the World Bank) with
systemically
influential sub-national and private counterparts.
Indeed, China has arrived at a point where its impact on the global economy is
systemically
important.
Back
Related words
Important
Banks
Financial
Institutions
Countries
Economies
Their
Global
Would
Other
Should
Crisis
Capital
Significant
Economy
Vital
Central
After
Which
Policy