scholarly journals Derivatives Holdings and Systemic Risk in the U.S. Banking Sector

2012 ◽  
Author(s):  
Maria Rodriguez Moreno ◽  
Sergio Mayordomo ◽  
Juan Ignacio Peña
Keyword(s):  
Systemic Risk ◽  
Banking Sector ◽  
The U.S

scholarly journals Derivatives holdings and systemic risk in the U.S. banking sector

2014 ◽  
Vol 45 ◽  
pp. 84-104 ◽  
Author(s):  
Sergio Mayordomo ◽  
Maria Rodriguez-Moreno ◽  
Juan Ignacio Peña
Keyword(s):  
Systemic Risk ◽  
Banking Sector ◽  
The U.S

scholarly journals Measuring the systemic risk in the South African banking sector

2017 ◽  
Vol 20 (1) ◽  
Author(s):  
Gregory M. Foggitt ◽  
Andre Heymans ◽  
Gary W. Van Vuuren ◽  
Anmar Pretorius
Keyword(s):  
Financial Crisis ◽  
South African ◽  
Systemic Risk ◽  
Banking Sector ◽  
Risk Index ◽  
Financial Sector ◽  
Ethical Behaviour ◽  
The South ◽  
Case Scenario ◽  
Worst Case

Background: In the aftermath of the sub-prime crisis, systemic risk has become a greater priority for regulators, with the National Treasury (2011) stating that regulators should proactively monitor changes in systemic risk.Aim: The aim is to quantify systemic risk as the capital shortfall an institution is likely to experience, conditional to the entire financial sector being undercapitalised.Setting: We measure the systemic risk index (SRISK) of the South African (SA) banking sector between 2001 and 2013.Methods: Systemic risk is measured with the SRISK.Results: Although the results indicated only moderate systemic risk in the SA financial sector over this period, there were significant spikes in the levels of systemic risk during periods of financial turmoil in other countries. Especially the stock market crash in 2002 and the subprime crisis in 2008. Based on our results, the largest contributor to systemic risk during quiet periods was Investec, the bank in our sample which had the lowest market capitalisation. However, during periods of financial turmoil, the contributions of other larger banks increased markedly.Conclusion: The implication of these spikes is that systemic risk levels may also be highly dependent on external economic factors, in addition to internal banking characteristics. The results indicate that the economic fundamentals of SA itself seem to have little effect on the amount of systemic risk present in the financial sector. A more significant relationship seems to exist with the stability of the financial sectors in foreign countries. The implication therefore is that complying with individual banking regulations, such as Basel, and corporate governance regulations promoting ethical behaviour, such as King III, may not be adequate. It is therefore proposed that banks should always have sufficient capital reserves in order to mitigate the effects of a financial crisis in a foreign country. The use of worst-case scenario analyses (such as those in this study) could aid in determining exactly how much capital banks could need in order to be considered sufficiently capitalised during a financial crisis, and therefore safe from systemic risk.

scholarly journals Banks behavior patterns as a response to the population financial activity in the macroeconomic shocks in Russia

2021 ◽  
Vol 50 (2) ◽  
pp. 74-95
Author(s):  
Yu.S. Evlakhova ◽  
◽  
E.N. Alifanova ◽  
A.A. Tregubova ◽  
◽  
...  
Keyword(s):  
Systemic Risk ◽  
Banking Sector ◽  
Behavior Pattern ◽  
Behavior Patterns ◽  
Economic Shocks ◽  
Macroeconomic Shocks ◽  
Financial Activity ◽  
Risk Research ◽  
Systemically Important Banks

This paper finds out the behavior patterns of the Russian banking sector and systemically important banks in response to changes in the population financial activity under the economic shocks. The results show that the Russian banking sector has a behavior pattern that includes the sequence of actions: the outflow of deposits — vulnerability to non-repayment of loans — deposit bubble — credit bubble. We find no consistent evidence that systemically important banks show the same sequence of actions during the crises. We also find that the banking sector behavior and systemically important banks’ behavior varied in 2008–2009, but became the same in the crisis of 2014–2015. The coincidence of behavior patterns of the banking sector and systemically important banks increases the systemic risk. Research on intragroup differences between systemically important banks will allow finding solutions to reduce the risk.

scholarly journals Does Fintech Contribute to Systemic Risk? Evidence from the U.S. And Europe

2019 ◽  
Author(s):  
Lavinia Franco ◽  
Ana Laura Garcia ◽  
Vigor Husetovic ◽  
Jessica Lassiter
Keyword(s):  
Systemic Risk ◽  
The U.S
Sign in / Sign up

Export Citation Format

Share Document