title: Financial Market Risk: Measurement and Analysis (Routledge International Studies in Money and Banking)
author: Cornelis A. Los
description: This book covers the latest theories and empirical findings of financial risk, its measurement and management, and its applications in the world of finance. Various ways for managing different types of risk - such as uncertainty, randomness, irregularity and probability - are initially measured. This book should prove to be invaluable to all students studying financial economics at an advanced level.
zlib_text:   
   
  Bank Liquidity Creation and Systemic Risk� 
   
   
  Denis Davydov*, Sami Vähämaa**, Sara Yasar*** 
  University of Vaasa, School of Accounting and Finance 
   
   
  October 28, 2020 
  Abstract 
  This paper examines the linkage between bank liquidity creation and systemic risk. Using 
  quarterly data on U.S. bank holding companies from 2003 to 2016, we document that 
  liquidity creation decreases systemic risk at the individual bank level after controlling for 
  bank size, asset risk, and other bank-specific attributes. After decomposing systemic risk 
  into bank-specific tail risk and systemic linkage, we find that the riskiness of individual 
  banks is negatively linked to liquidity creation. Nevertheless, our results also demonstrate 
  that liquidity creation strengthens the systemic linkage of individual banks to severe 
  shocks in the financial system. Overall, our empirical findings demonstrate that the level 
  of liquidity creation may have important implications for financial stability and the 