result in systemic risk, increasing uncertainty about the quality of banks' assets and undermining trust in the banking …

We build a balance sheet-based model to capture run risk, i.e., a reduced potential to raise capital from liquidity … critical in order for banking system regulators to adequately assess run risk and resilience. By bringing a time series of SVB … SVB prone to run risk, as they were increasingly relying on held-to- maturity, aka hidden-to-maturity, accounting …

The ability of institutions to effectively manage and aggregate risk-related data is an essential precondition for … sound decision-making and strong risk governance. This applies to any data used to steer and manage institutions, both … strategically and operationally, as well as data used for risk, financial and supervisory reporting. …

disaster risk shocks, investment funds shed periphery but do not adjust core sovereign debt holdings. The periphery debt shed …

arbitrage, but may also give banks incentives to choose their risk models strategically. Current policy answers to this problem … include the use of risk-weight floors and leverage ratios. I show that banks for which those are binding reduce their credit … supply, which drives interest rates up, invites other banks to adopt optimistic models and possibly increases aggregate risk …

scenarios depends on the level of cyclical risk. Risk-related scenarios are used as inputs for the stress test model. Banks …' capital losses derived from a scenario based on a reference level of risk are used to set the structural requirement …. Additional losses associated with the current risk scenario are used to set the cyclical requirement. This approach provides a …

augmented the effect of competition on realized bank risk (i.e. more intense competition and greater use of securitization is … correlated with higher levels of realized risk) during the crisis. In contrast, higher levels of capital did not buffer the … impact of competition on realized risk. It follows that cooperation between supervisory and competition authorities is …