The risk of contagion in banking—also referred to as systemic risk—is here defined as the risk that financial difficulties at one or more bank(s) spill over to a large number of other banks or the financial system as a whole. Contagion can spread either through the information channel or the credit channel.
the situation in which a disease is spread by touching someone or something: The doctor says there's no chance / danger of contagion. the situation in which feelings, ideas, or problems spread from one place to another: Brazil's stock markets were battered by contagion from the problems in other emerging markets.
Internal-contagion risk includes in particular the risk that arises where a firm carries on: 1 (1) both insurance and non-insurance activities; or 2 (2) two or more different types of insurance activity; or 3 (3) insurance activities from offices or branches located in both the United Kingdom and overseas.