We show that risk-mitigating incentives dominate risk-shifting incentives in fragile banks. We study security trading … by banks, as banks can easily and quickly change their risk exposure within their security portfolio. For identification … less risk after financial stress shocks. Results hold within identical regulatory capital risk weights categories. Moreover …

class of models for systemic risk that incorporates the structural characteristics of the financial system and a feedback …

class of models for systemic risk, incorporating the structural characteristics of the financial system and a feedback …

class of models for systemic risk incorporating the structural characteristics of the financial system and feedback … wrong policy choices. To mitigate this risk, SAFE develops two modeling perspectives: a set of medium term (six … public version of SAFE EWS to enhance systemic risk stress testing and scenario analysis. The paper shows econometric results …

risk, leading to a higher level of systemic risk in the financial system. We apply ∆CoVaR, introduced by Adrian and … Brunnermeier (2011), as the measure of systemic risk. Our sample uses 744 listed commercial banks and covers 34 countries. Our work … shows that more legal protection leads to higher level of systemic risk. This result supports the “dark side” of the strong …

The failure to spot emerging systemic risk and prevent the current global financial crisis warrants a reexamination of …

propose a hybrid class of models for systemic risk, incorporating the structural characteristics of the financial system and a … models is that the model's uncertainty may lead to wrong policy choices. To mitigate this risk, SAFE develops two modeling … supervisory actions. Individual financial institutions may utilize the public version of SAFE EWS to enhance systemic risk stress …

risk culture in banking institutions. Specifically, it examines the regulatory responses and industry-led initiatives taken … since the financial crisis of 2007-08 to address weaknesses in bank risk culture. The paper suggests that shortcomings in … risk culture — particularly as understood through the lens of human agency theory — in large financial institutions are the …

, initial capital stringency and prompt corrective action are all positively related to systemic risk, measured by Marginal …