contagion only occurs if the correlation between the portfolios of banks is high enough. Without deposit insurance contagious … bank runs can impose such great losses on banks, that banks choose less correlated portfolios to avoid contagion altogether …

of last resort and other safety net issues. We devote particular emphasis to the analysis of systemic risk and contagion …

stability. We model the default of a large bank and analyse the resulting contagion effects. This is compared to a common shock … contagion effects, but are instead the greater threat to systemic stability. …

This paper investigates contagion of major financial institutions by focusing on extreme stock return co-movements. Our … measure of contagion within banking and insurance sectors is the number of coincidences of daily extreme returns that cannot … evidence of contagion for the US, Germany and the UK. This result is stronger for the insurance sector than for the banking …