# Financial market interdependence (interdependence of financial market players)

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- Post ID: 588661
- Modified: 2023-07-25T21:01:48+00:00
- Language: en

## Definition

The individual players on the financial market (mainly banks, funds, insurance companies) have a close business relationship with each other (nowadays mostly even worldwide). In normal times, it appears that their risks are independent of each other. In the event of a financial market collapse, as in the case of the financial crisis that followed the subprime crisis, it becomes clear that there is a systemic risk here. If an institution can no longer meet its obligations, all its counterparties will be in trouble. - See domino effect, Elizabeth question, financial market, growth significance, financial market collapse, herd behavior, Lehman bankruptcy, Murphy's law, debt bomb, systemic conflict, financial market. - Cf. Monthly Report of the Deutsche Bundesbank of May 2010, pp. 42 f. (effects of the financial crisis on companies, households and the government), Monthly Report of the ECB of February 2012, pp. 117 ff. (cross-border capital flows in the euro area; detailed presentation; many overviews), Monthly Report of the Deutsche Bundesbank of March 2012, pp. 45 ff. (shocks in the U.S. transmitted to Europe; overviews; references). Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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