Financial system: Difference between revisions

 
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Line 275: Line 275:
\text{Interest Rate}
\text{Interest Rate}
\rightarrow
\rightarrow
\text{Cost of Borrowing}
\begin{cases}
+
\text{Cost of Borrowing}\\
\text{Return on Lending}
\text{Return on Lending}
\end{math>
\end{cases}
</math>


Changes in interest rates can affect:
Changes in interest rates can affect:
Line 312: Line 313:
\text{Financial Regulation}
\text{Financial Regulation}
\rightarrow
\rightarrow
\text{Risk Management}
\begin{cases}
+
\text{Risk Management}\\
\text{Market Integrity}
\text{Market Integrity}\\
+
\text{Financial Stability}
\text{Financial Stability}
\end{cases}
</math>
</math>


Line 351: Line 352:
\rightarrow
\rightarrow
\text{Broader Financial Stress}
\text{Broader Financial Stress}
\end{math>
</math>


[[Systemic risk]] refers to the possibility that such disruptions could impair the functioning of a substantial portion of the financial system.
[[Systemic risk]] refers to the possibility that such disruptions could impair the functioning of a substantial portion of the financial system.