The central problem for financial regulation is reducing systemic risk. Systemic risk is the risk that the failure of … paper addresses the five most important policies for dealing with systemic risk: the imposition of capital requirements, the … related limitations on bank size would not reduce systemic risk …

We establish a relationship between the idiosyncratic risk of portfolios and a parsimonious group of market variables …. Because we are able to summarize idiosyncratic risk with this small group of variables, we are able to design stress …

The paper reports the outcome of the stress-testing of liquidity risk in the TARGET2 payment system, with the study …

risk. Recent theoretical and empirical work have addressed this problem. We argue, from a theoretical perspective, that … this controversy ultimately depends on how risk is assessed or measured. In particular, we observe that when one talks … about random losses (risk) there are two intertwined approaches. On the one hand, one can fix the loss level and ask with …