Speaking about China at the moment, we often first think of headlines such as “Slump in growth in China” or “Stock market crash in Shanghai”.
Lars’ concern regarding the challenges of monitoring these risks in terms of modeling, measurement and data accessibility is of prime relevance.3 Sources of systemic risk While the notion of systemic risk is vague, our knowledge about its possible causes is also limited. The inherent vulnerabilities of the financial system are relatively well understood.