Ontology highlight
ABSTRACT:
SUBMITTER: Engle RF
PROVIDER: S-EPMC6744912 | biostudies-literature | 2019 Sep
REPOSITORIES: biostudies-literature
Proceedings of the National Academy of Sciences of the United States of America 20190827 37
When financial firms are undercapitalized, they are vulnerable to external shocks. The natural response to such vulnerability is to reduce leverage, and this can endogenously start a financial crisis. Excessive credit growth, the main cause of financial crises, is reflected in the undercapitalization of the financial sector. Market-based measures of systemic risk such as SRISK, which stands for systemic risk, enable monitoring how such weakness emerges and progresses in real time. In this paper, ...[more]