Bank Asset Concentration Not Necessarily Cause for Worry
4 Pages Posted: 21 Jun 2017
Date Written: 2017
Abstract
U.S. banking assets have become substantially more concentrated within a few large institutions. However, decreasing relative rates of big-bank growth and of idiosyncratic volatility—an indicator of individual bank susceptibility to shocks and a resulting redistribution of assets—suggest a reduction in systemic financial system risk through contagion.
Suggested Citation: Suggested Citation
Fernholz, Ricardo T. and Koch, Christoffer, Bank Asset Concentration Not Necessarily Cause for Worry (2017). Economic Letter, Vol. 12, Issue 7, pp. 1-4, 2017, Available at SSRN: https://ssrn.com/abstract=2990307
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