In this paper, we define a financial institution’s contribution to financial systemic risk as the increase in financial … systemic risk conditional on the crash of the financial institution. The higher the contribution is, the more systemically … important is the institution for the system. Based on relevant but different measurements of systemic risk, we propose a set of …

have a funding advantage over small banks after controlling for bank-specific and market risk factors. Working with hand …

(“ex ante”) versus during crisis times (“ex post”). During calm times, higher bail-out probabilities result in higher risk … banks with higher bail out probabilities tend to increase their risk taking less compared to banks that were ex ante …

Understanding the nature of credit risk has important implications for financial stability. Since authorities notably … difficulty lies in finding reliable measures of aggregate credit risk in the economy, as opposed to firmlevel credit risk. In … the type of risk priced in corporate bonds (i.e., credit or liquidity risk). However, although the two models provide …