This paper proposes a theoretically based and easy-to-implement way to measure the systemic risk of financial … the face value of the debt of the entire sector. We conceive of an individual bank's systemic risk as its contribution to … losses or reluctant to exercise the call, the government itself becomes a secondary source of systemic risk. We apply our …

Risk-shifting occurs when creditors or guarantors are exposed to loss without receiving adequate compensation. This … paper seeks to measure and compare how well authorities in 56 countries controlled bank risk shifting during the 1990s …. Although significant risk shifting occurs on average, substantial variation exists in the effectiveness of risk control across …

This paper conducts the first empirical assessment of theories concerning relationships among risk taking by banks …, their ownership structures, and national bank regulations. We focus on conflicts between bank managers and owners over risk …, and show that bank risk taking varies positively with the comparative power of shareholders within the corporate …

(BHC) assets across U.S. metropolitan statistical areas (MSAs) on BHC risk. We find that the geographic expansion of bank … assets reduces risk. Moreover, geographic expansion reduces risk more when BHCs expand into economically dissimilar MSAs, i … quality. Our results are consistent with arguments that geographic expansion lowers risk by reducing exposure to idiosyncratic …

to firms with a lower share of long-term debt since the rollover risk for the former is lower and the latter is higher … exposure to sovereign risk. Firms with higher shares of short-term debt decrease investment more relative to firms with lower …

power sharing dispose a country toward design features that accommodate risk-shifting by banks …