We formulate a simple theoretical model of a banking industry that we use to identify and construct theory-based measures of systemic bank shocks (SBS). These measures differ from 'banking crisis' (BC) indicators employed in many empirical studies, which are constructed using primarily...

We formulate a simple theoretical model of a banking industry that we use to identify and construct theory-based measures of systemic bank shocks (SBS). These measures differ from "banking crisis" (BC) indicators employed in many empirical studies, which are constructed using primarily...

This study investigates what features of large US banks could have made them susceptible to a systemic crisis. Employing both market and accounting data we isolate four factors. The first is the long-term trend in rates of return (on equity or assets) which was negative for about a decade...