innovation. Using bank-, industry- and country-level data for 32, mostly high-income, countries between 1996 and 2006, this paper … growth, (ii) real sector volatility, and (iii) bank fragility. We find evidence for both bright and dark sides of financial … idiosyncratic bank fragility, higher bank profit volatility and higher bank losses during the recent crisis …

financial innovation. Using bank-, industry- and country-level data for 32, mostly high-income, countries between 1996 and 2006 …) real sector growth, (ii) real sector volatility, and (iii) bank fragility. We find evidence for both bright and dark sides … innovation and with higher idiosyncratic bank fragility, higher bank profit volatility and higher bank losses during the recent …