Dr C. Zhou (Chen)
Erasmus School of Economics, Department of Economics
The stability of the banking industry is of importance for the entire economy. This is why society, policy makers, central bankers, bank supervisors and regulators are so concerned with the systemic risk in the banking industry. Although there is more or less agreement on when the system is at risk, as of yet we lack precise indicators. This research project will design various systemic risk measures and indicators and subsequently use the measures to determine the contribution of individual financial institutions or macro-economic shocks to systemic risk. Studying measures on systemic risk indicators and related issues can help supervisors in monitoring the development of systemic risk in the financial system, supervising systemically important financial institutions and devising resolution plans during financial crises.