This paper examines bank risk and its main determinants when gauged at various bank threshold variables. We apply the dynamic panel threshold estimation technique developed by Seo and Shin (2016) to a panel of 3,109 commercial banks in the United States during 2005–2019. A novel instrument is...

We investigate the effect of portfolio diversification on banking systemic risk, where the network effect is incorporated. We analyze three kinds of interbank networks, namely, random networks, small-world networks and scale-free networks. We show that the effect of portfolio diversification on...

Financial networks provide channels for contagion risks and their topological properties determine financial stability. We extend financial network reconstruction methods to the bipartite network and then compare their reproducibility for the real credit network in terms of different topological...