Banking system stress: Unravelling its influence on U.S. industry risk

Siyu Yi, Sitong Li and Gengxuan Chen

Research in International Business and Finance, 2025, vol. 76, issue C

Abstract: Using the Banking System Stress (BSS) Index proposed in Craig (2020), we investigate the impact of BSS on the risk of various industries in the United States. The findings indicate that an increase in the BSS has different impacts on risk across various industries. The results of the dynamic relationship analysis indicate that the impact of BSS shocks on the economic development trend of the United States is not enduring. We further find that an increase in banking system stress significantly enhances the correlation between the risk of different industries, leading to an increase in the interconnection of risks across industries and their systemic risk contribution.

Keywords: Banking system stress; Industry risks; Dynamic relationship; Systemic risk contribution (search for similar items in EconPapers)
JEL-codes: C13 C22 C58 G17 (search for similar items in EconPapers)
Date: 2025
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0275531925000625
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:76:y:2025:i:c:s0275531925000625

DOI: 10.1016/j.ribaf.2025.102806

Access Statistics for this article

Research in International Business and Finance is currently edited by T. Lagoarde Segot

More articles in Research in International Business and Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().