The Limits of Market-Based Risk Transfer and Implications for Managing Systemic Risks

50 Pages Posted: 31 Oct 2006

See all articles by Todd Groome

Todd Groome

International Monetary Fund (IMF)

Nicolas Blancher

International Monetary Fund (IMF)

Francois P. Haas

International Monetary Fund (IMF)

John Kiff

International Monetary Fund

Date Written: September 2006

Abstract

The paper discusses the limits to market-based risk transfer in the financial system and the implications for the management of systemic long-term financial risks. Financial instruments or markets to transfer and better manage these risks across institutions and sectors are, as yet, either nascent or nonexistent. As such, the paper investigates why these markets remain "incomplete". It also explores a range of options by which policymakers may encourage the development of these markets as part of governments' role as a risk manager.

Keywords: Risk transfer, systemic risk, insurance markets, supervision, regulation

JEL Classification: G20, G18, G22, G23, G28, G32, H55

Suggested Citation

Groome, Todd and Blancher, Nicolas and Haas, Francois P. and Kiff, John, The Limits of Market-Based Risk Transfer and Implications for Managing Systemic Risks (September 2006). IMF Working Paper No. 06/217, Available at SSRN: https://ssrn.com/abstract=941279

Todd Groome (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Nicolas Blancher

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Francois P. Haas

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

John Kiff

International Monetary Fund ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
204
Abstract Views
1,416
rank
164,920
PlumX Metrics