<abstract xmlns="http://www.w3.org/1999/xhtml"><p> The issue of systemic risk regulation and management has gained substantial attention following the latest financial crisis. In the case of the EU it became crucial to deal with the systemic risk problem on a supranational level since the banking sectors of the member countries are highly integrated. While substantial measures have been undertaken to mitigate systemic risk in the EU, the discussion of further reforms continues. This study’s goal is to assess basic indicators of systemic risk in the EU banking sector by using three complementary methods: a forward-looking stock market data analysis, an EU-stress test analysis for systemically important banks, and an empirical investigation of the relation between banking regulation and systemic risk as measured by bank balance sheet indicators. The results lead to a recommendation of further necessary regulatory reforms, which appear in the conclusion.</p></abstract>

The issue of systemic risk regulation and management has gained substantial attention following the latest financial crisis. In the case of the EU it became crucial to deal with the systemic risk problem on a supranational level since the banking sectors of the member countries are highly integrated. While substantial measures have been undertaken to mitigate systemic risk in the EU, the discussion of further reforms continues. This study’s goal is to assess basic indicators of systemic risk in the EU banking sector by using three complementary methods: a forward-looking stock market data analysis, an EU-stress test analysis for systemically important banks, and an empirical investigation of the relation between banking regulation and systemic risk as measured by bank balance sheet indicators. The results lead to a recommendation of further necessary regulatory reforms, which appear in the conclusion.

Basic Indicators of Systemic Risk in the EU Banking Sector. Implications for Banking Regulation

Chair of International Finance Warsaw School of Economics, Poland

International Journal of Management and Economics

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

The issue of systemic risk regulation and management has gained substantial attention following the latest financial crisis. In the case of the EU it became...

Basic Indicators of Systemic Risk in the EU Banking Sector. Implications for Banking Regulation

Published Online: Dec 04, 2015

Page range: 36 - 55

DOI: https://doi.org/10.1515/ijme-2015-0027

Keywords
systemic risk, stress test, banking regulation, EU banking

© 2015

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Basic Indicators of Systemic Risk in the EU Banking Sector. Implications for Banking Regulation

Published Online: Dec 04, 2015

Page range: 36 - 55

DOI: https://doi.org/10.1515/ijme-2015-0027

Keywordssystemic risk, stress test, banking regulation, EU banking

© 2015

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
systemic risk, stress test, banking regulation, EU banking