in herding behavior. It shows that these two important causes of systemic risk are interdependent and thus cannot be …

We find that the level of bank herding in real estate loans during boom period is substantially higher than the level … of bank herding in commercial and industrial loans or consumer loans. More importantly, we find that bank herding … significantly increases systemic risk. In particular, herding in real estate loans by big banks contribute more to systemic risk. We …

This paper studies the relation between bank herding and financial system stability. I develop a set of bank …-specific, time-varying measures of herding in asset, liability, and off-balance sheet (OBS) portfolios and empirically examine the … relation between bank herding and systemic risk contribution. I find that for large banks, asset herding is associated with …