Bank Asset Concentration Not Necessarily Cause for Worry
4 Pages Posted: 21 Jun 2017
Date Written: 2017
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