SYSTEMIC RISK AND FINANCIAL CRISIS: WHAT LESSONS CAN BE LEARNED FROM PAST FINANCIAL CRISES
Any of the proposed definitions of systemic risk exist in the institutional paradigm. This approach was applied, but only until recently. New conditions for the functioning of financial markets necessitate the search for new approaches to understanding systemic risk and its regulation. Experience of the financial crisis 2008 and the bankruptcy of the hedge Fund LTCM outlined the seriousness of the problem of «too big to fail» in financial markets. The assistance that was provided to the largest USA banks and insurance companies in 2008 and in subsequent years, demonstrated to the largest banks that they can count on government support in case offinancial problems, which further increased the "risk appetite” of these banks. The value of derivatives of the two largest banks exceed the total assets by 30 times and some other U.S. banks 200 times, which increases the risks and makes the possibility of realization of the financial crisis in a worst-case scenario.