Micro-Prudential Regulation and Banks' Systemic Risk
40 Pages Posted: 6 Nov 2019
Date Written: October 14, 2019
This paper investigates how countries' micro-prudential regulatory regimes are related to banks' systemic risk. We use a bank-level systemic risk indicator that can be decomposed into a bank's individual risk and its systemic linkage. To proxy the strictness of a country's regulatory regime, we employ World Bank survey data.
Keywords: systemic risk, regulatory regime, micro-prudential regulation
JEL Classification: G21, G28
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