related payment and settlement systems. At the heart of systemic risk are contagion effects, various forms of external effects … rigorous models of bank and payment system contagion have now been developed, although a general theoretical paradigm is still … missing. Direct econometric tests of bank contagion effects seem to be mainly limited to the United States. Empirical studies …

Building on the literature on systemic risk and financial contagion, the pa- per introduces estimated network linkages … hold in relation to simpler benchmarks of contagion. Generally, this paper gives direct support for measures of …

or even a fully-fledged banking crisis. We find that a large current account deficit, a fall in price competitiveness …, strong real growth and high public debt-to-GDP ratio increase the probability that a lending or housing boom would be …

This paper tests financial contagion due to interbank linkages. For identification we exploit an idiosyncratic, sudden … contagion is higher for banks with weaker fundamentals. Third, interbank linkages among surviving banks further propagate the … linkages act as an important channel of contagion and hold important policy implications. JEL Classification: G21, G28, E58 …