We review the extensive literature on systemic risk and connect it to the current regulatory
debate. While we take stock of the achievements of this rapidly growing field, we identify a …

We study an optimal disclosure policy of a regulator that has information about banks (eg,
from conducting stress tests). In our model, disclosure can destroy risk-sharing opportunities …

Stress tests have become an important component of the supervisory toolkit. However, the
extent of disclosure of stress-test results remains controversial. We argue that while stress …

Does institutional quality enhance or weaken the effect of bank regulations and supervision
on bank stability? We use a sample of around 1050 commercial banks from 69 emerging …

We use computational linguistics to develop a dynamic, interpretable methodology that can
detect emerging risks in the financial sector. Our model can predict heightened risk …

One of the most widely discussed issues in banking regulation and research is
transparency. Yet, whether depositors–banks' most important claimholders–are affected by …

Artificial intelligence (AI) is rapidly changing how the financial system is operated, taking
over core functions for both cost savings and operational efficiency reasons. AI will assist …

This paper examines banks' disclosures and loss recognition in the 2007–2009 financial
crisis and identifies several core issues for the link between accounting and financial …

We study robust/adversarial information design in global games, with an application to
stress testing. We show that the optimal policy coordinates all market participants on the …

Purpose Grounded in Transformative Service Research, the purpose of this paper is to
explore the mechanisms by which bank information transparency influences consumer's …