The systemic importance of banks – name and shame seems to work

We test the impact of announcements of the list of global systemically important banks by the Financial Stability Board on the systemic importance of these banks. To this end we estimate the Systemic Importance Index introduced by Zhou (2010) for 110 banks, including global systemically important ba...

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Bibliographic Details
Published inFinance research letters Vol. 18; pp. 297 - 301
Main Authors Bańbuła, Piotr, Iwanicz-Drozdowska, Małgorzata
Format Journal Article
LanguageEnglish
Published San Diego Elsevier Inc 01.08.2016
Academic Press
Subjects
Balance sheets
Banks
Business models
G-SIBs
Indexes
Size of enterprise
Studies
Systemic importance
Systemic importance
G14
G-SIBs
G21
G18
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Summary:We test the impact of announcements of the list of global systemically important banks by the Financial Stability Board on the systemic importance of these banks. To this end we estimate the Systemic Importance Index introduced by Zhou (2010) for 110 banks, including global systemically important banks, over the period 1991–2014. For each bank we control for a number of variables, including size, quality of the bank balance sheet and business model that can affect systemic importance. We find that the announcement has decreased the systemic importance of these institutions by about 25%, a substantial and statistically significant amount.
ISSN:1544-6123
1544-6131
DOI:10.1016/j.frl.2016.05.001