The recent financial crisis has highlighted the risks posed by individual banks to the entire banking system. Next to the issue of determining individual contributions to systemic risk, the question of additional taxes on the financial sector has been debated. This paper uses SYMBOL, a...

The present work proposes a new methodology to estimate the reduction in the probability of occurrence of a systemic banking crisis entailed by the implementation of the Basel III framework for banking regulation. This is achieved by making use of the SYMBOL model (SYstemic Model of Banking...

The last financial crisis has shown that large banking crises not only pose a highly dangerous risk to financial systems, but also to both the real economy and public finances. Reducing that risk has become a priority for regulators and governments. Still, the debate is open on what the systemic...

The last financial crisis has shown that large banking crises pose a highly dangerous risk to both the real economy and public finances. Reducing that risk has become a priority for regulators and governments, but the debate on how to deal with it remains open. Contagion plays a key role: domino...

This paper shows how securitization changes the linkages and the systemic risks in the regulated and unregulated "shadow" banking system. The theoretical framework includes an analysis of the transfer of idiosyncratic, systematic and systemic risks and the use of the proceeds from the transfer....