Abstract
The 1974 failure of Herstatt Bank and the disruptions which hit financial markets ushered in an era of heightened concern about the potential vulnerability of payments systems, especially the wholesale large-value systems, to systemic risk and other problems. Systemic risk—the likelihood that a problem in one institution will cause the insolvency of healthy institutions—through runs, the creation of liquidity problems, or other forces, has been a major policy focus.1
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Eisenbeis, R.A. (1995). Private Sector Solutions to Payments System Fragility. In: Benink, H.A. (eds) Coping with Financial Fragility and Systemic Risk. Financial and Monetary Policy Studies, vol 30. Springer, Boston, MA. https://doi.org/10.1007/978-1-4757-2373-1_9
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DOI: https://doi.org/10.1007/978-1-4757-2373-1_9
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