This paper presents an analysis of the dynamic measures of volatility connectedness of major bank stocks in the US and … direction of the volatility connectedness was from the US banks towards the EU banks. However, once the financial crisis became … global in the last quarter of 2008, volatility connectedness became bi-directional. The surge in volatility connectedness …

effect of macroeconomic volatility, the openness of the banking system, and banking regulations on bank risks. Our measure of … bank risk is the volatility of banks’ pretax profits. We find that macroeconomic volatility increases banks’ profit … volatility and that international openness of the banking system lowers bank risk. We find no impact of banking regulation on …