, banks' disclosures about relevant risk exposures were relatively sparse. Such disclosures came later after major concerns …This paper examines banks' disclosures and loss recognition in the financial crisis and identifies several core issues … about banks' exposures had arisen in markets. Similarly, the recognition of loan losses was relatively slow and delayed …

financial stability. Our analysis suggests that, going into the financial crisis, banks' disclosures about relevant risk … exposures were relatively sparse. Such disclosures came later after major concerns about banks' exposures had arisen in markets …. Similarly, banks delayed the recognition of loan losses. Banks' incentives seem to drive this evidence, suggesting that …

between these two approaches has enriched our understanding of systemic financial risk. After presenting a brief summary of … key terminology, we review models for leverage and endogenous risk dynamics. We then review the network aspects of … systemic risk, including models for the three main channels of contagion: counterparty loss, overlapping portfolios and funding …

with banking and insurance sectors, we show that credit risk transfer can be beneficial when banks face uniform demand for …Some have argued that recent increases in credit risk transfer are desirable because they improve the diversification … of risk. Others have suggested that they may be undesirable if they increase the risk of financial crises. Using a model …

lead to significant changes in the competitive environment should banks consider adding a granularity adjustment to the …

This paper studies the extent to which monetary policy may affect banks' perception of credit risk and the way banks … indicators on banks' risk weights for credit risk. We present robust evidence of the existence of the risk-taking channel in the … possible side-effects of monetary policy on how banks measure risk. …

security used to hedge the risk is similar to a CAT bond. This work looks at the incentives associated with insurance … of business. The concern was apparently brevity risk, i.e., the risk of premature death. The brevity risk due to a … pandemic is similar to the property risk associated with catastrophic events such as earthquakes and hurricanes and the …

Historical evidence like the global financial crisis from 2007-09 highlights that sector concentration risk can play an … II consider only name concentration risk explicitly in their solvency capital requirements for asset concentration risk … and neglect sector concentration risk. We show by means of US insurers' asset holdings from 2009 to 2018 that substantial …

credit-risk models, a sufficiently low asset value, is also described by a low ratio of the equity price to the firm …

to share risk. Central clearing can provide insurance against counterparty risk but must be designed to preserve risk …Derivatives activity, motivated by risk-sharing, can breed risk-taking. Bad news about the risk of the asset underlying … the derivative increases the expected liability of a protection seller and undermines her risk-prevention incentives. This …