Drivers of systemic risk: Do national and European perspectives differ?

Claudia Buch, Thomas Krause () and Lena Tonzer

Journal of International Money and Finance, 2019, vol. 91, issue C, 160-176

Abstract: With the establishment of the Banking Union, the European Central Bank has been granted the power to impose stricter regulations than the national regulator if systemic risks are not adequately addressed at the national level. We ask whether there is a cross-border externality in the sense that a bank’s systemic risk differs when applying a national versus a European perspective. On average, banks’ contribution to systemic risk is similar at the two regional levels, and so is the ranking of banks. Generally, larger banks and banks with a lower share of loans are more systemically important. The effects of these variables are qualitatively but not quantitatively similar at the national versus the European level.

Keywords: Systemic risk; Bank regulation; Banking Union (search for similar items in EconPapers)
JEL-codes: G01 G21 G28 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (13)

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Related works:
Working Paper: Drivers of systemic risk: Do national and European perspectives differ? (2017)
Working Paper: Drivers of Systemic Risk: Do National and European Perspectives Differ? (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jimfin:v:91:y:2019:i:c:p:160-176

DOI: 10.1016/j.jimonfin.2018.11.005

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