- Preface to Paperback Edition
- List of Figures
- List of Tables
- List of Abbreviations
- List of Contributors
- Banking an Overview
- The Roles of Banks in Financial Systems
- The Accelerating Integration of Banks and Markets and its Implications for Regulation
- Risk Management in Banking
- Liquidity Production in Twenty-first-century Banking
- Diversification in Banking
- Universal Banking
- The Corporate Structure of International Financial Conglomerates: Complexity and its Implications for Safety and Soundness
- Central Banking
- The Role of Banks in the Transmission of Monetary Policy
- Lender of Last Resort and Bank Closure Policy
- Regulation and Supervision: An Ethical Perspective
- Deposit Insurance
- Risk-Based Regulatory Capital and Basel II
- Market Discipline in Bank Supervision
- Competition and Antitrust Policy in Banking
- World Trade Organization Commitments vs. Reported Practices on Foreign Bank Entry and Regulation: A Cross-Country Analysis
- Efficiency in Banking: Theory, Practice, and Evidence
- Technological Change, Financial Innovation, and Diffusion in Banking
- Banking Globalization: International Consolidation and Mergers in Banking
- Small Business Lending
- Consumer Lending
- Residential Mortgages
- Securitization: Instruments and Implications
- Systemic Risk in Banking: An Update
- Banking Crises
- The Great Depression and Other ‘Contagious’ Events
- Payments Systems
- Finance and Economic Development: The Role of Government
- Banking and Real Economic Activity
- Banking in the United States
- Banking in the European Union
- Banking in Transition Countries
- Banking in Latin America
- Banking in Japan
- Banking in Developing Nations of Asia: An Overview of Recent Changes in Ownership Structure
Abstract and Keywords
This article provides a comprehensive analysis of systemic risk, as the primary ingredient to understand financial crises and as a main rationale for banking regulation, prudential supervision, and crisis management. The second section provides the framework within which the theoretical and empirical literature is interpreted in the subsequent parts and briefly discusses its relevance for economic policy. The third section gives an overview of theoretical models explaining systemic risks in banking markets (including payment systems). The fourth section surveys econometric tests and some other quantitative empirical assessments of the various facets of systemic risk, focusing particularly on bank contagion but also on joint crises — for example, as caused by systematic shocks or the unravelling of imbalances that have built up over time. The fifth section concludes.
Olivier De Bandt holds a PhD from the Department of Economics of the University of Chicago. He is currently Director of Business Conditions and Macroeconomic Forecasting at the Banque de France and Associate Professor at the University of Paris X.
Philipp Hartmann is Head of the Financial Research Division at the European Central Bank, a Fellow of the Centre for Economic Policy Research, and the Vice-President of SUERF—the European Money and Finance Forum. He works in banking, financial stability, European capital markets, and international monetary affairs. His research is published in academic journals, including Review of Economics and Statistics, Journal of Money, Credit, and Banking, Economic Policy, Journal of International Money and Finance, and Journal of Banking & Finance, and several books. His policy work has been discussed in fora such as the ECOFIN Council, the ECB Governing Council, European Commission fora, and the Basel Committee on Banking Supervision and published in numerous reports.
José Luis Peydró has been an economist at the European Central Bank since 2005. His specialization is financial intermediation and monetary policy. He holds a PhD in Finance from INSEAD, a Masters in Economics and Finance from CEMFI, and a BA in Economics from the University of Barcelona. He won the First Prize for the best Economics BA student in Spain in 1997.
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