Abstract
The settlement risk, also known as “Herstatt risk,” is the risk of losing receivables during the settlement period. The Herstatt-Bank of Cologne/Germany went bankrupt in 1974. A few banks had already made their payments in Deutsche Mark “DM” to Herstatt and lost the equivalent in U.S. dollars as Herstatt was unable to make the payment.
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© 2014 Springer-Verlag Berlin Heidelberg
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Wernz, J. (2014). Appendix: Settlement Risk and Systemic Risk. In: Bank Management and Control. Management for Professionals. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-40374-3_13
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DOI: https://doi.org/10.1007/978-3-642-40374-3_13
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Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-40373-6
Online ISBN: 978-3-642-40374-3
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