In this paper, we study the implications of diversification in the asset portfolios of banks for financial stability … studies we find that diversification at the level of individual banks may be beneficial for financial stability even if it … both the level of diversification, and the connectivity and structure of the financial network. In contrast to earlier …

transmission of risk among interconnected banks and to measure their systemic importance. In this paper we show how classic input …

transforms existing financial claims against ultimate borrowers that have been originated by traditional banks. Based on … non-financial private sector had been originated by shadow banks. Consequently, dampening credit creation by the …