We analyze how bank profitability impacts financial stability from both theoretical and empirical perspectives. We … first develop a theoretical model of the relationship between bank profitability and financial stability by exploring the … empirical determinants of bank risks and profitability, and how the level and the source of bank profitability affect risks for …

with bank-level data to study the contagion potential of an exogenous shock via credit and funding risks. We find that …-linear function of the combination of network structures and bank-specific characteristics …

conditions, and the regulatory environment. We use this model to simulate bank credit losses for stress-testing purposes and to … that can be made to capture country-specific institutional features. The model uses bank portfolio data broken down by risk …

This paper reviews the approaches to systemic risk analysis in 32 central bank financial stability reports (FSRs). We … and growth-at-risk, more frequently than Article IV staff reports. We emphasize that a central bank FSR typically presents …

affecting bank solvency during adverse macroeconomic conditions. This paper demonstrates the effectiveness of using extreme …

This paper analyzes the evolution of bank funding structures in the run up to the global financial crisis and studies … the implications for financial stability, exploiting a bank-level dataset that covers about 11,000 banks in the U.S. and …-crisis period were more likely to fail afterward. The likelihood of bank failure also increases with bank risk-taking. In the cross …

Whether and to what extent tougher bank regulation weighs on economic growth is an open empirical question. Using data … from 28 manufacturing industries in 50 countries, we explore the extent to which cross-country differences in bank … enterprises. This relationship, however, exists only for bank-based systems and emerging market economies. In the pre …

The recent financial crisis has shown how interconnected the financial world has become. Shocks in one location or … asset class can have a sizable impact on the stability of institutions and markets around the world. But systemic risk … closing data gaps include the G20 Data Gaps Initiative, which recommends the collection of consistent bank-level data for …