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Challenges to global financial stability: Interconnections, credit risk, business cycle and the role of market participants

Duygun, Meryem; Ladley, Daniel; Shaban, Mohamed

Authors

MERYEM DUYGUN Meryem.Duygun@nottingham.ac.uk
Aviva Chair in Risk and Insurance

Daniel Ladley

Mohamed Shaban



Abstract

The worldwide financial crisis (WFC) of 2007-09 has shown the importance of cross-sectional dependencies of assets, credit exposures and volatility, which can threaten domestic and global financial stability through cascades in financial networks. A correct assessment of company-specific risk has to account for the potential risk spillover effects from other firms (Hautsch et al. 2014). This is because of the intertwined nature of financial markets, which allow the spread of risk throughout the system (Acemoglu et al., 2015). The potential impact of interconnected financial institutions on the entire financial system has been a financial stability concern for central banks and regulators. The need for economic foundations for a systemic risk measure is more than an academic concern since it involves regulators, supervisory authorities and policy-makers (Acharya et al. 2017). This special issue provides a substantial contribution to the systemic risk literature

Journal Article Type Article
Publication Date 2020-03
Journal Journal of Banking & Finance
Print ISSN 0378-4266
Electronic ISSN 1872-6372
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 112
Article Number 105735
Pages 105735
APA6 Citation Duygun, M., Ladley, D., & Shaban, M. (2020). Challenges to global financial stability: Interconnections, credit risk, business cycle and the role of market participants. Journal of Banking and Finance, 112, 105735. https://doi.org/10.1016/j.jbankfin.2020.105735
DOI https://doi.org/10.1016/j.jbankfin.2020.105735
Keywords Economics and Econometrics; Finance
Publisher URL https://www.sciencedirect.com/science/article/pii/S0378426620300029
Additional Information This article is maintained by: Elsevier; Article Title: Challenges to global financial stability: Interconnections, credit risk, business cycle and the role of market participants; Journal Title: Journal of Banking & Finance; CrossRef DOI link to publisher maintained version: https://doi.org/10.1016/j.jbankfin.2020.105735; Content Type: simple-article; Copyright: © 2020 Published by Elsevier B.V.

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