SYSTEMIC RISK IN BANKING SECTOR

Authors

  • Oana Raluca Dragan (Santamarian) Faculty of Economics and Business Administration, Babes – Bolyai University
  • Ioan Batrancea Faculty of Economics and Business Administration, Babes – Bolyai University
  • Liviu Bechis Univeristatea Vasile Goldis Arad

Abstract

The current financial crisis reveals new dimensions of the concept of systemic risk in banking. This crisis has shown how interconnected the  financial world has become and showed how a shock coming from a region can propagate very quickly, with an impact on financial stability around the world. History has shown once again the fragility of the banking sector. Compared to other sectors banking financial contagion spreads faster and negative externalities have much stronger effects. This article provides a conceptual framework for examining systemic risk, the negative effects of this event but also models for assessing systemic risk and  systemic banking crises.

Author Biographies

Oana Raluca Dragan (Santamarian), Faculty of Economics and Business Administration, Babes – Bolyai University

Ph.D. Student

Ioan Batrancea, Faculty of Economics and Business Administration, Babes – Bolyai University

Professor Ph.D. 

Liviu Bechis, Univeristatea Vasile Goldis Arad

lector dr.

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Published

2013-08-08

Issue

Vol. 13 No. 1(17) (2013)

Section

Accounting and finance