Book contents
- Macroprudential Policy and Practice
- Macroeconomic Policy Making
- Macroprudential Policy and Practice
- Copyright page
- Contents
- Contributors
- Introduction
- 1 The Macroeconomics of Macroprudential Policies
- 2 A Liquidity-Based Approach to Macroprudential Policy*
- 3 Financial Intermediation and Monetary and Macroprudential Policies
- 4 The New Art of Central Banking
- 5 The Macroprudential Countercyclical Capital Buffer in Basel III
- 6 On the Use of Monetary and Macroprudential Policies for Small Open Economies
- 7 Capital Flows and Macroprudential Policy
- 8 Macroprudential Policy in a Globalised World
- 9 Systemic Risk of European Banks
- 10 Macroprudential Tools of Systemic Risk Analysis
- 11 When Is Macroprudential Policy Effective?
- 12 Macroprudential Policy
- Index
- References
9 - Systemic Risk of European Banks
Regulators and Markets*
Published online by Cambridge University Press: 09 August 2018
Book contents
- Macroprudential Policy and Practice
- Macroeconomic Policy Making
- Macroprudential Policy and Practice
- Copyright page
- Contents
- Contributors
- Introduction
- 1 The Macroeconomics of Macroprudential Policies
- 2 A Liquidity-Based Approach to Macroprudential Policy*
- 3 Financial Intermediation and Monetary and Macroprudential Policies
- 4 The New Art of Central Banking
- 5 The Macroprudential Countercyclical Capital Buffer in Basel III
- 6 On the Use of Monetary and Macroprudential Policies for Small Open Economies
- 7 Capital Flows and Macroprudential Policy
- 8 Macroprudential Policy in a Globalised World
- 9 Systemic Risk of European Banks
- 10 Macroprudential Tools of Systemic Risk Analysis
- 11 When Is Macroprudential Policy Effective?
- 12 Macroprudential Policy
- Index
- References
Summary
Regulatory rules may have different impacts on risk-taking by individual banks and on banks’ systemic risk levels. That is why implementing prudential rules and policies requires careful consideration of their impact on bank risk and systemic risk. This chapter assesses whether market-based measures of systemic risk and recent regulatory indicators provide similar rankings on the systemic importance of large European banks. We find evidence that regulatory indicators of systemic importance are positively related to systemic risk. In particular, banks with higher scores on regulatory indicators have a stronger link to the system in the event of financial stress, rather than having a higher level of bank risk.
- Type
- Chapter
- Information
- Macroprudential Policy and Practice , pp. 205 - 224Publisher: Cambridge University PressPrint publication year: 2018
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