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...

This paper intends to evaluate the impact of financial deregulation of US before 2008 through how the risks associated with mergers and acquisitions (M&As) affect banks' levels of solvency. This paper is the first that hypothesizes bank solvency to be affected by M&As directly and indirectly...

Banks receive two types of ratings from major rating agencies: an “all-in” and a “stand-alone” rating. This paper investigates whether or not rating gaps between the all-in ratings and standalone ratings could serve as a useful measure for the systemic risk of banks. Using US data from...