Clusterings of bank failures occur frequently, but do they reflect systemic risk? Without a theoretically coherent and empirically grounded conception of systemic risk, bank regulators run the risk of exacerbating it, as the banking history of the past century has demonstrated.
What Is Systemic Risk, and Do Bank Regulators Retard or Contribute to It?
By George G. Kaufman, Kenneth E. Scott
This
article
appeared in
the Winter 2002/03 issue of The Independent Review.
Other Independent Review articles by George G. Kaufman | |
Summer 1997 | Preventing Banking Crises in the Future: Lessons from Past Mistakes |