Systemic Crisis
/ˈsɪstɛmɪk ˈkraɪsɪs/
Definitions
- (n.) A profound and widespread failure within a financial, political, or legal system threatening its stability and functionality.
The government's intervention was necessary to prevent a systemic crisis in the banking sector.
- (n.) A situation where multiple interdependent institutions or entities simultaneously collapse or malfunction, causing cascading effects throughout the society or economy.
Regulators must address systemic crisis risks to avoid domino effects in the economy.
Forms
- systemic crisis
- systemic crises
Related terms
See also
Commentary
In legal contexts, systemic crisis often underlies regulatory reforms and emergency legislation, emphasizing broad, interconnected failures rather than isolated incidents.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.