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We examine sources of systemic risk (threshold size, complexity, and interconnectedness) with factors constructed from equity returns of large financial firms, after accounting for standard risk factors. From the factor loadings and factor returns, we estimate the implicit government subsidy for...
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A trend common to virtually all European banking markets over the last decade or so has been the fall in bank numbers … is declining. However, a growth in branch numbers in many systems, increasing foreign bank presence, as well as the … any risks for consumers. The paper concludes with some observations on the impact of mergers on bank performance. Economic …
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adverse consequences of disorderly bank failures. However, this promise of support comes at a cost: large, complex or … average bank. The authors obtain similar results when they assess the effect of increased support on net charge-offs and when …
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