Systemic Risk of European Banks Regulators and Markets*

Maarten R.C. van Oordt, Chen Zhou

Research output: Chapter/Conference proceedingChapterAcademic


Regulatory rules may have different impacts on risk-taking by individual banks and on banks’ systemic risk levels. That is why implementing prudential rules and policies requires careful consideration of their impact on bank risk and systemic risk. This chapter assesses whether market-based measures of systemic risk and recent regulatory indicators provide similar rankings on the systemic importance of large European banks. We find evidence that regulatory indicators of systemic importance are positively related to systemic risk. In particular, banks with higher scores on regulatory indicators have a stronger link to the system in the event of financial stress, rather than having a higher level of bank risk.

Original languageEnglish
Title of host publicationMacroprudential Policy and Practice
PublisherCambridge University Press
Number of pages20
ISBN (Electronic)9781108304429
ISBN (Print)9781108419901
Publication statusPublished - 1 Jan 2018

Bibliographical note

Publisher Copyright:
© Cambridge University Press 2018.


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