Research published by the Bank for International Settlements (BIS) on Monday has identified a bank's size as the most important proxy of its systemic importance.
The research, by BIS economists Mathias Drehmann and Nikola Tarashev, found that size matters regardless of how one chooses to measure systemic risk. The research also flagged that interbank lending and interbank borrowing provided useful additional information for some measures of systemic importance, but not others.
- EC’s Cyprus ‘failure’ undermined Eurozone central bank independence – Demetriades
- Reserve management practices are splintering
- Female regulators increase stability of the financial system, IMF paper finds
- Booming US economy set against ‘fragile’ markets – BIS review
- BIS paper defends credit gap measure