Systemic Risk

The risk that the failure of one participant in a transfer system, or in financial markets generally, to meet its required obligations will cause other participants or financial institutions to be unable to meet their obligations (including settlement obligations in a transfer system) when due. Such a failure may cause significant liquidity or credit problems and, as a result, might threaten the stability of financial markets.

Direct quote from BIS publication: Payment systems in the Group of Ten countries Red Book, December 1993 (the "Red Book").