In this paper we propose a framework for measuring and stress testing the systemic risk of a group of major financial institutions. The systemic risk is measured by the price of insurance against financial distress, which is based on ex ante measures of default probabilities of individual banks...

Purpose After over 30 years’ reform and opening-up, China as the second largest economy is now facing the most essential transformation of management philosophy and the biggest challenging issue of business sustainable development, with people’s increasing worry of the deterioration of...