KARADAĞ, Mehmet Mete istanbul Aydin Üniversitesi, Turkey

SYSTEMIC RISK, SYSTEMICALLY IMPORTANT FINANCIAL INSTITUTIONS, AND GLOBAL FINANCIAL CRISIS

38358

The global financial crisis which has emerged in 2007 and rapidly spread, has revealed how deeply systemic risks can lead to negative effects on the financial markets. With this crisis, problems arising from systemically important financial institutions and damages of these problems in the economy has become much more apparent. After the financial crisis, to reduce the likelihood of systemically important institutions’ insolvency and to minimize the adverse effects of these institutions on the economy, the need for more effective supervision and oversight for the stability of both the national and international financial systems have become necessary. To reduce the moral hazard problems associated with these financial institutions -which were perceived as too big to fail- and the systemic risk, and to strengthen the market discipline in several countries regulatory and supervisory authorities have made some arrangements. They also attempted to establish collaboration among themselves. This study aims to evaluate the concept of systemic risk and elements that make up systemic importance, to examine studies evaluating systemically important financial institutions. This study also focuses on bailouts and systemic risks stemming from financial institutions which perceived as “too big to fail” in several countries during the global financial crisis. It will be complemented with an overall assesment of the studies for the prevention of systemic risks.

293

Systemic Risk , Systemically Important Financial Institutions , Systemically Important Banks , Too Big to Fail , Too Important to Fail , Global Financial Crisis

Journal Of Financial Researches an‎d Studies

319