To date, an operational measure of systemic risk capturing non-linear tail comovement between system-wide and … value is sevenfold that of an increase. Moreover, the downward bias in systemic risk from ignoring this asymmetric pattern … asymmetric model also produces much better estimates and fitting, and thus improves the capacity to monitor systemic risk. Our …

-term oriented, with high implicit capital, and low risk (thanks to the law of large numbers). Trading is transactions …-based: scalable, shortterm, capital constrained, and with the ability to generate risk from concentrated positions. When a bank …-ante. And a bank may use trading for risk-shifting. Financial development augments the scalability of trading, which initially …

liquidity risk. We find an inverted U-shaped relationship between capital requirements and bank lending, efficiency, and welfare …