Krause, T., Sondershaus, T. and Tonzer, L. (2017). Complexity and bank risk during the financial crisis Economics Letters, 150:118--121.
-
Affiliated author
-
Publication year2017
-
JournalEconomics Letters
{\textcopyright} 2016 Elsevier B.V.We construct a novel dataset to measure banks{\textquoteright} complexity and relate it to banks{\textquoteright} riskiness. The sample covers stock listed Euro area banks from 2007 to 2014. Bank stability is significantly affected by complexity, whereas the direction of the effect differs across complexity measures.