The Role of Complexity for Bank Risk during the Financial Crisis: Evidence from a Novel Dataset

Thomas Krause (), Talina Sondershaus and Lena Tonzer

No 17/2016, IWH Discussion Papers from Halle Institute for Economic Research (IWH)

Abstract: We construct a novel dataset to measure banks' complexity and relate it to banks' riskiness. The sample covers stock listed Euro area banks from 2007 to 2014. Bank stability is significantly affected by complexity, whereas the direction of the effect differs across complexity measures. This heterogeneity advises against the use of a single complexity measure when evaluating the implications of bank complexity.

Keywords: bank risk; complexity; globalization (search for similar items in EconPapers)
JEL-codes: G01 G20 G33 (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-ban, nep-eec and nep-rmg
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:iwhdps:iwh-17-16

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