that are driven by out of equilibrium behavior, such as clustered volatility and fat tails. We argue that traditional … banks …

In this paper we study systemic risk for the US and Europe. We show that banks' exposures to common risk factors are … crucial for systemic risk. We come to this conclusion by first showing that relations between US and European banks are … smaller than within each region. We then show that European banks react more strongly to the onset of the financial crisis …

regulatory equity and the increasing reliance on banks’ internal risk models for the determination of risk weights. The first …

. Poor lending decisions allowed banks to transfer risk to the fund, resulting in their capturing returns on performing loans …, activity, and leverage were collected on the largest seven national banks, which control 87% of the capital in the banking …

curtailed credit supply, particularly at less-well capitalized banks. Second, such negative impact was larger for countries … significantly smaller for foreign-owned banks, suggesting that opening up to foreign investors may be an effective way to partly … shield the domestic banking sector from negative shocks. Overall, CAR enforcement — by inducing banks to reduce their lending …

We explore the effects of ownership concentration on the risk-taking behavior of banks. Our analysis focuses on East … concentrated ownership improves banks' liquidity. Further, the recent financial crisis does not appear to change the fundamental …

Hypothesis, under which stress-tested banks reduce credit supply – particularly to relatively risky borrowers – to decrease their … credit risk. The findings do not support the Moral Hazard Hypothesis, in which these banks expand credit supply … banks, banks that passed the stress tests, and the earlier stress tests …

significantly increases systemic risk. In particular, herding in real estate loans by big banks contribute more to systemic risk. We …

problems but that regulators should be selective in what tools they use to enhance risk culture in banks with consideration …

banks (CSBs) had on the quality of their borrowers' financial statements. Using a difference-in-difference research design …-on-assets (ROA) after a bank's IPO. We also find that pursuant to the IPOs by their lending banks, various measures of borrowers' FRQ …