This paper proposes a theoretically sound and easy-to-implement way to measure the systemic risk of financial … institutions using publicly available accounting and stock market data. The measure models credit risk of banks as a put option on …-sector losses from systemic default risk as the value of a put option written on a portfolio of aggregate bank assets whose exercise …

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

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 …

(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 …