. The findings imply that the investors immediately update their beliefs on the systemic risk of the bank after the bucket … bank (G-SIB) envisaged by regulators has an impact on the CDS prices of these banks. We find evidence that the CDS spreads … of a G-SIB bank increase (decrease) after the announcement of a higher (lower) capital surcharge. However, this effect is …

contrast, abnormal returns are not robustly related to bank risk. These findings reveal market expectations consistent with the … bank is, the higher are the abnormal returns, both in 'crisis countries' and 'non-crisis countries'. Moreover, abnormal … returns of banks are positively related to sovereign risk, with Greek banks experiencing extremely high abnormal returns. By …

bank's contribution to systemic risk (SRISK) at the national and the euro-area level. Our research delivers three main …, an exploration of the drivers of systemic risk shows that a bank’s contribution to systemic risk is positively related to …. Since the establishment of the Banking Union in 2014, the European Central Bank (ECB) can impose stricter regulations than …

paper shows that financial regulation can be effective at mitigating this type of risk. Exploiting regulatory changes … financial institutions subject to stricter regulation. Following the easing of these regulations, overconfidence-induced risk …A large body of literature finds that managerial overconfidence increases risk-taking by financial institutions. This …

Recent literature has proposed new methods for measuring the systemic risk of financial institutions based on observed … stock returns. In this paper we examine the reliability and robustness of such risk measures, focusing on CoVaR, marginal … expected shortfall, and option-based tail risk estimates. We show that CoVaR exhibits undesired characteristics in the way it …

bank profits, taxpayers, and consumers. …

that supervision should include a comprehensive view of different bank risk dimensions. …We show that banks' risk exposure in one asset category affects how they report regulatory risk weights for another … asset category. Specifically, banks report lower credit risk weights for their loan portfolio when they face higher risk …

We investigate the relationship between bank complexity and bank risk-taking using German banking data over the period … tightenings. Thus, our results indicate that post-crisis regulation is effective in reducing banks’ complexity-risk nexus. … 2005-2017. We find that more complex banking organizations tend to take on more risk, but that this complexity-risk nexus …

managerial abilities of executives based on either ROA or risk-return effciency of their previous employers. Our results show …. The performance differentials are highly pronounced in high-risk banks and in the post-crisis period. …