Systemic risks – learning the hard way  [Slide 1] [Slide 2] The concept of systemic risks has received much more weight after the global financial crisis. Before the crisis, the term was mainly used within the Financial Stability Departments of central banks and among a limited number of banking and finance researchers.
But for the financial system to perform this important role, households and firms must have confidence in its ability to withstand shocks. This is a crucial point, because problems in one area of the system can quickly spread, as recent events have vividly demonstrated.