کد مقاله | کد نشریه | سال انتشار | مقاله انگلیسی | نسخه تمام متن |
---|---|---|---|---|
998181 | 1481538 | 2014 | 12 صفحه PDF | دانلود رایگان |
• We examine the evolution of credit risk co-dependence in the banking sectors of over 65 countries.
• We find that there has been a significant increase in default risk co-dependence over the 3-year period leading up to the financial crisis.
• We also find that countries that are more integrated with liberalized financial systems have seen a greater rise in co-dependence in their banking sectors.
• This negative effect of financial openness is mitigated by a strong institutional environment that allows for efficient public and private monitoring of financial institutions.
We examine the evolution of credit risk co-dependence in the banking sectors of over 65 countries. We find that there has been a significant increase in default risk co-dependence over the 3-year period leading up to the financial crisis. We also find that countries that are more integrated with liberalized financial systems have seen a greater rise in co-dependence in their banking sectors. This negative effect of financial openness is mitigated by a strong institutional environment that allows for efficient public and private monitoring of financial institutions.
Journal: Journal of Financial Stability - Volume 13, August 2014, Pages 202–213