investigate how the structure of those networks can affect the capacity of regulators to assess the level of systemic risk. We … of systemic risk in terms of expected losses. We further quantify the effects of cyclicality, leverage, volatility and …

We propose a new theory of systemic risk based on Knightian uncertainty (or "ambiguity"). We show that, due to … pessimistic about other asset classes as well. This means that idiosyncratic risk can create contagion and snowball into systemic … risk. Furthermore, in a Diamond and Dybvig (1983) setting, we show that, surprisingly, uncertainty aversion causes …

Does higher policy uncertainty lead to higher financial risk for sure? This study shows an opposite evidence. Based on … large negative impact on the bank systemic risk, and the effect is more pronounced for small and unprofitable banks. Further … analysis shows that the decline in bank systemic risk is due to the lower similarity of asset and liability structure between …