Systemic risk
The risk of damage to the entire financial system from the collapse of an individual institution from a group of them. Regulators have had to reconsider this subject in the aftermath of the financial crisis of 2007-09 when some companies were deemed “too big to fail”. Large commercial banks definitely fall into the category but the collapse of AIG, an insurance company, indicated that the potential for systemic risk was widespread. See also macroprudential regulation.
