What Is Systemic Risk, and Do Bank Regulators Retard or Contribute to It?
By George G. Kaufman, Kenneth E. Scott
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.
|Other Independent Review articles by George G. Kaufman|
|Summer 1997||Preventing Banking Crises in the Future: Lessons from Past Mistakes|