] Interconnectedness among financial institutions (banks) can play a major role in precipitating systemic financial crises. [2] Lack of … liquidating risky loans. Interconnectedness among their asset portfolios can obscure information about these portfolios, causing … interconnectedness. The optimal degree of regulation, which may depend on depositors' degree of risk aversion, may not eliminate …

demonstrate that a reduction of heterogeneity occurred in the U.S. financial sector prior to both the Great Recession (2007 …-2009) and the COVID-19 Recession, especially for the largest bank holding companies (BHCs). As such, a declining level of …

demonstrate that a reduction of heterogeneity occurred in the U.S. financial sector prior to both the Great Recession (2007- 2009 …) and the COVID-19 Recession, especially for the largest bank holding companies (BHCs). As such, a declining level of …

We examine sources of systemic risk (threshold size, complexity, and interconnectedness) with factors constructed from …, whereas complexity and interconnectedness-implied subsidies are substantial, resulting in an almost sevenfold increase in …