CONCEPTUAL BASES OF FUNCTIONING OF SYSTEMIC FINANCIAL RISKS TRANSMISSION MECHANISM

Abstract

The key principles of functioning of the transmission mechanism of systemic financial risk through the prism of its components (systemic events and distribution channels of financial shocks) are researched in the article. The essence of «systemic event» is specified by the author. 10 channels of transmission of financial risks are clarified and characterized. 
These are the channels: credit, deposit, currency, ownership` channel, investment, price, informational, infrastructural, regulatory and securitizational, whereas most researchers produce only credit and informational channels. And other channels or do not define or do not describe them incompletely.
That is why, in our opinion, under the system event should be understood an event that characterizes a level of absorption of financial shocks, above which is running the transmission mechanism between different financial institutions, financial market segments, markets or individual sectors of different countries. This approach takes into account the systematic realization of financial shocks and allows to determine it at different levels (micro, meso, macro and global).
The matrix of channels of systemic financial risks contagion at the micro-, meso-, macro- and global levels is developed.
The author developed classification system events on different classification criteria: by the scale of destructive influence, by the intensity/severity of destructive processes, by the level of individual rationality of economic agents, by the level of realization of destructive processes (localization). 
To a more accurate identification of transmission channels the author proposed to expand the list of economic agents. For example, the impact of financial and credit system infrastructure characterized by functioning of payment systems, deposit-guarantee funds, banking associations, insurance companies, etc. and news agencies (ratings, analytical companies etc.).