Macroprudential policies—caps on loan to value ratios, limits on credit growth and other
balance-sheet restrictions,(countercyclical) capital and reserve requirements and …

The recent financial crisis has prompted much new research on the interconnectedness of
the modern financial system and the extent to which it contributes to systemic fragility …

We present a model in which fire sales propagate shocks across bank balance sheets.
When a bank experiences a negative shock to its equity, a natural way to return to target …

Common asset holdings are widely believed to have been the primary vector of contagion in
the recent financial crisis. We develop a network approach to the amplification of financial …

This paper proposes a dynamic multi-agent model of a banking system with central bank.
Banks optimize a portfolio of risky investments and riskless excess reserves according to …

Climate change poses new challenges for portfolio management. In our not-yet-low carbon
world, investors face a trade-off between minimizing their exposure to climate risks and …

This article reviews research and policy work on nonbank financial intermediation (NBFI),
taking a financial stability perspective. It first documents the growth in NBFI, reviews its …

This paper documents a positive relation between internationalization and bank risk. This is
consistent with the empirical dominance of the market risk hypothesis, whereby …

When setting banks' regulatory capital requirement based on their contribution to the overall
risk of the banking system we have to consider that the risk of the banking system as well as …

The global financial crisis has precipitated an increasing appreciation of the need for a
systemic perspective toward financial stability. For example: What role do large banks play …