Advanced economies

, 1–3, 7, 17, 19, 22, 24, 26, 65, 67

African economies

, 49

Algebraic Derivation

, 97, 99

Applied Hedging Strategy

, 74–77

GARCH approach

, 74

Applied Interest Rate Swap

, 94

Asian financial crisis of 1997

, 48

Asset finance

, 20

Asset maturities

, 59

Assets

, 13, 18–21

crypto

, 20–21

financial

, 18

higher-yielding

, 23

Audit trail

, 32

Banca d’Italia

, 16, 23

Bank of England, The

, 7, 12, 16, 18–19, 30–31, 40, 60

Banking sector

, 2–3, 13, 17–19, 23, 58–60, 62, 65, 67

Banks

, 6, 8, 16, 18, 24, 28–30, 52–53, 57, 90

commercial

, 28–29, 52–53, 57

investment

, 29, 90

Bernanke, B.

, 18

Bitcoin

, 21

Bloomberg New Energy Finance

, 20

Borderless payments zone

, 34

Broad money

, 2, 62, 67–68

Call option

, 83–87

Capacity

, 25

loan repayment

, 2

loss-absorbing

, 19

Capital

, 2–3

human

, 23

large

, 19

venture

, 20

Capital account surpluses

, 49

Capital Adequacy Ratio

, 58

Capital flows

, 12, 22, 48, 63, 68, 95, 105, 111–112

Capital Reserves

, 47–48, 57–60

Central Bank Balance Sheet and Money Supply

, 52

Central bankers

, 1, 8, 14, 31

Classical economists

, 104

Clearing and settlement systems

, 28, 38

Closed Economy

, 95–97

CLS system

, 34

Collaterals

, 9, 27

eligible

, 40, 42

foreign

, 44

Collaterals arrangements

, 27

Commodity Futures Trading Commission

, 77

Comparative assessments

, 1

Continuous Linked Settlement (CLS)

, 32

Conventional assets

, 20

Conventional Risk Assessment Matrix

, 4

Corporate credit risk

, 47

Corporate sector

, 2–3, 17, 24, 47

Country-specific features

, 1

Covered call merges

, 89

Covered call position

, 89

Coveted metric of analysis

, 17, 57

Credit portfolio

, 30

Credit risk

, 34, 39, 43, 45, 47, 70, 83

Crime prevention

, 27

See also Money laundering

Cross-border issues

, 44

Cross-border payments

, 34

Crowding-out effect

, 102–105

Cryptocurrencies

, 28, 30–31

Currency risk

, 43, 57, 69–70, 73–74, 81, 83, 92

Currency Swaps

, 91–92, 94

Currencies

, 6, 12

digital

, 43

foreign

, 42–43

issued

, 6

local

, 33, 49

Custodians

, 29

Cyberattack risks

, 31, 43

Cybercrime

, 41, 43

Cyberespionage

, 43

Cyberhacktivist

, 43

Danmarks Nationalbank, The

, 27, 34–36, 43, 45

Data breach attack

, 44

Debt markets

, 13, 29

Deferred Net Settlement

, 37

See also Large-value payment systems

Deflationary gap

, 105, 107, 111

Derivation of IS Curve

, 95, 98

Derivatives market

, 28, 81

Derivatives

, 2–3, 18, 28, 69–70, 72–74, 77, 81, 89, 94

Dhar, S.

, 68

Direct taxes

, 24

Distributed Denial-of-Service (DDoS)

, 44

Domestic fiscal position

, 13

Domestic level

, 2

Econometric models

, 14

Economic transactions

, 104

Effective payment mechanism

, 28

See also Payment instruments

Electronic-based means of payments

, 32

Emerging market economies

, 2–3, 22, 48, 67

Empirical evidence

, 73

Euro Area Financial Stability

, 24

European Central Bank (ECB)

, 24, 37

European Economic Area (EEA)

, 18

European System of Central Banks

, 28

European Systemic Risk Board, The

, 16

Exchange rate

, 11, 55, 67, 81–82, 106–108, 112

current

, 81–82

desired

, 107

fixed

, 106, 108, 112

flexible

, 108

floating

, 112

foreign

, 55

future

, 67

real

, 11

Fazzari, S. M

, 71

Feasible default risk

, 91

Federal Funds rate

, 30

Fedwire funds service

, 37

Fedwire securities services

, 38

Finality of settlements

, 32

Financial Architecture

, 39, 42

Financial crisis

, 1, 16, 48

Financial instruments

, 3, 27, 39, 50, 69, 94

Financial instruments-derivatives

, 3

Financial intermediation

, 2, 47

Financial markets and infrastructures

, 29

central securities depositories

, 29

custodians

, 29

Payment Settlement Systems

, 29

securities settlement systems

, 29

Financial markets

, 23, 27, 36, 39, 41, 65

Financial sector linkages

, 7

Financial sector risks

, 7

Financial Services Authority

, 77

Financial Stability Board

, 43

Financial stability reports

, 1, 4, 14, 27, 47

Financial stability reviews

, 1

See also Central bankers; Policy-makers

Financial stability risks

, 2, 23, 42, 44, 47

Financial stability

, 1–2, 4, 14, 16, 17–20, 23, 27, 28, 33, 38–39, 60, 65

Financial system

, 1, 6, 13, 28–29, 33, 38–39, 43–45, 48, 50, 60, 68

financial architecture

, 39

financial institutions

, 39

financial instruments

, 39

financial markets

, 39

regulators and rules and laws governing

, 39

Fintech

, 3, 16

Fiscal policy

, 9, 17, 24, 95, 102–111

Fiscal stabilisers

, 5, 7

Fiscal Sustainability Risk Indicators

, 25

Fixed Exchange Rate Regime

, 49, 51–56, 59, 64, 105–108

Fixed Exchange Rate System

, 49

Floating Exchange rate regime

, 48–49, 62, 65, 108–112

Floating Exchange rate system

, 48–49, 112

Foreign asset and liability

, 10

Foreign asset-based reserves

, 57

Foreign assets

, 49, 52–53, 55, 67, 106–107, 114

Foreign capital inflows

, 63, 67

Foreign currency price

, 51

Foreign currency settlement system

, 33

Foreign direct investments

, 22, 67

Foreign exchange reserves

, 48, 57, 61–64

Foreign exchange transactions

, 32, 34, 38

See also CLS system

Foreign investors

, 22

Foresight Africa

, 23

Froot, K.A.

, 71

Gai, P.

, 60

GARCH hedge ratio

, 74

GDP deflator

, 25

GDP growth rate

, 25

GDP growth

, 7, 14, 17, 23, 25

Geometric derivation

, 95, 98

Geopolitical Risk Index

, 22

Geopolitical tensions

, 2–3, 20–21

Global developments

, 2, 17–26

Global economic growth

, 21

Global economy

, 16, 17, 21, 56

Global financial crisis

, 1, 11, 16, 17, 23, 27, 33, 42, 47, 61–62, 64–65, 67–68, 107

Global financial markets

, 7, 13, 23

Global geopolitical events

, 13

Global nature

, 1

Globalisation of banks

, 44

Government sector

, 2–3, 16, 17, 58, 98–99

Gross system

, 35–37, 42

Hedging

, 70–74, 77, 81, 91

cross-hedging

, 74

direct hedging

, 73–74

natural hedging

, 73–74

High systemic risk

, 36

High-powered money

, 113–114

Historical data

, 14

Holding Liquidity Reserves

, 60

Household leverage

, 8

Household sector

, 2–3, 17

Hubbard, G. R.

, 71

Hull, J.

, 69–70

IMF Global Financial Stability Reports

, 14

IMF. See International Monetary Fund

Indian banks data breach

, 44

Inflation data

, 2

Innovative framework

, 8

Intelligent networks

, 17

Interbank banking

, 35

Interbank market rates

, 30, 60

Interest elasticity of investment

, 98, 104

Interest rate risk management

, 94

Interest Rate Swaps

, 90–94

Interest rates

, 2–3, 18–20, 24

foreign

, 52, 54–55

high

, 59

higher

, 25, 55, 59, 64, 111

interbank

, 30, 33

key

, 30, 33

local

, 52, 54–56

long-term

, 13, 20

low

, 2, 18–20

lower

, 55, 111

zero

, 98

Interest-sensitive investment

, 103, 105

International exchanges

, 77–78

International Monetary Fund (IMF)

, 5–6, 8–9, 12–22

International transactions

, 37, 63

Investment banks

, 29, 90

IS curve

, 95–99, 101–107, 109–112

IS-LM Curves

, 103

IS-LM Framework

, 95, 102

Kapadia, S.

, 60

Key economies

, 2, 17

Key interest rates

, 30, 33

KPMG

, 16, 23

Krugman, P.

, 56, 61, 67

Labour market conditions

, 2

Labour market flexibility

, 26

Labour-enforced programmes

, 26

Large-value payment systems

, 30–31, 35–36

Least developed countries (LDGs)

, 23

Ledrut

, 33, 38

Legal risk

, 43

Level of consumer sentiment

, 2

Level of disposable income

, 2

Level of external confidence

, 2

Leverage effects

, 76–77

Leveraged financial instruments

, 94

Leveraging artificial intelligence

, 17

Limit systemic risk

, 36

Liquidity balances

, 101

Liquidity Coverage Ratio

, 47, 57–60

Liquidity management

, 29, 42

Liquidity preference

, 101–102

Liquidity reserves

, 45, 47, 56, 58–60

Liquidity risk

, 18, 23, 42, 50, 59, 65–66

Liquidity state

, 40, 42–43, 59

Liquidity-induced systemic risk

, 60

LM curve

, 101–107, 111

Loan repayment capacity

, 2

Local and international developments

, 1

Local asset-based reserves

, 57

Local currency large-value payment system

, 33

Low inflation

, 17, 25

Macroeconomic policies

, 7

Margin call

, 79, 81

Marked-to-market prices

, 70, 81

Markets

, 6–7, 12–13, 18, 20, 22–24, 26–28

debt markets

, 29

derivatives markets

, 28, 29

FX markets

, 29

stock markets

, 29

Mauritian economy

, 17

Mergers and acquisitions

, 19–20

Merging Case

, 89–90

Mobile internet adoption

, 17

Monetary Policies

, 23, 104

Monetary policy implementation

, 29

Monetary policy transmission mechanism

, 33

Monetary terms

, 9

Money laundering

, 27

Money multiplier

, 53, 113

Money Supply

, 52–55, 64, 101–102, 104–107, 113–114

Mundell-Fleming Exchange Rate Model

, 95

Mutual funds

, 29

Modigliani, F.

, 70

Miller, M.

, 70

Macro-prudential policies

, 6, 9, 12

Macroeconomic variables

, 2–3

Monetary policy

, 7–8, 17–18, 20, 22–24, 29–31, 33, 50, 59–60, 95, 102–104, 107–109, 111–112

See also Federal Funds rate

National currency

, 60, 68

Net Stable Funding Ratio

, 47, 57–60

Net system

, 36–37, 42

Non-Bank Financial Institutions

, 18, 29

asset managers

, 29

finance and loan companies

, 29

insurance companies

, 29

mutual funds

, 29

Non-banking sector

, 2–3, 28, 33

Non-renewable energy

, 20

Obstfeld, M.

, 67–68

Open economy

, 98–99

Operational risk

, 27, 28, 40–41, 43–45

Operational strategies

, 73, 92

Option premium

, 85

OTC market

, 91

Other financial services

, 29

credit card companies

, 29

investment funds

, 29

payment service providers

, 29

Paper-based payment instruments

, 32

Payment and settlements system/mobile economy

, 3

Payment channels

, 28

ATM or SWIFT

, 28

Payment instruments

, 28, 38

cheques, credit cards, debit cards and mobile banking

, 28

Perfect Capital Mobility

, 105, 107–109, 112

Petersen, B. C.

, 71

Policy Goals and Expenditure-Switching Policies

, 110

Political economy

, 2, 63, 68

Price determination

, 78

Protective Put

, 87–90

Protracted period of low productivity

, 7

PSS functions

, 41

PSS infrastructure

, 31

PSS services

, 32–33

Public investments

, 25

Purchasing Managers’ Index (PMI), The

, 23

Put Option

, 86–88

Policy-makers

, 1, 8, 14, 107

See also Global financial crisis

Payment and Settlement System

, 2, 27–29, 31, 33, 38–45

Queuing

, 35, 41

RAM. See Risk Assessment Matrix

Real money balances

, 101–102

Real national income

, 54–55, 95–98, 101–106, 108–112

Real-time basis

, 32

‘Red Book’

, 38

Reddy

, 49, 64

Renewable energy

, 20

Reserves

, 47–68

Retail payments

, 28, 32, 34

Retail payment system

, 33, 35

Risk and Probability

, 13–14

Risk-weighted assets

, 58

Real economy

, 1, 18, 63

Risk Assessment Matrix (RAM)

, 4–8, 9, 13

Real estate sector

, 2–3, 16

Ramlall, I.

, 17, 23, 49–50, 52, 73

Rules and regulations

, 17, 27, 42, 44

Scharfstein, D.S.

, 71

Secondary market

, 78

Securities clearing and settlement system

, 34

Securities Settlement Systems

, 29, 31, 35, 38, 45

Shadow-banking activities

, 14

Short-term debt

, 25, 61–62, 67–68

Short-term liabilities

, 59

Smartcards

, 35

Smith, C.W.

, 71–72

Standard & Poor’s

, 21, 23

Standard deviation

, 23

Standardised approach

, 1

Standardised reporting approach

, 1

Stein, J.C.

, 71

Stock index futures contracts

, 79

Stock markets

, 29

Stress index indicators

, 2

Structural reforms

, 7, 9, 12

Stulz, R.M.

, 71–72

Swap agreement

, 94

System inquiries

, 32

Systemic risk

, 36–37, 40–42, 45, 60

Terrorist risk

, 44

Time-varying variance

, 76

Total money stock

, 113–114

Trading partners

, 2, 47

Trading price limits

, 78

Transaction validation

, 32

Transfer of funds

, 27

Unconditional Covariance Matrix

, 21

Unemployment rate

, 3

United Nations Environment Programme, The

, 20

United Nations, The

, 17, 20–21, 23

Value-at-risk

, 23

Variance model

, 76

Visual assessments

, 4

Visual mapping of risks

, 4

Wholesale payments and securities settlements

, 28, 32

Williams

, 63

World Currency Composition of Official Foreign Exchange Reserves

, 57

World Economic Outlooks

, 14

Zero

, 21, 71, 76, 85–88, 98, 102

crowding-out effect

, 102

effect

, 102

interest rates

, 98

tax rate

, 71