Systematic Risk in the Banking System

Historical Context and review of current crisis: Economic theory: why banks periodically fall into crisis, History of system-wide failures and their causes, Tulips to Lehman Nature of Systematic Risk: Interconnectedness of banks and other elements of the global financial system. Early Warning Signals of Bank failure: Financial and non-financial indicators of distress, Market indicators; equity, CDS and bond indicators Regulation: Emergence of deregulation in the late 1980s and its progression around the globe, The commissioning of reports and enquiries; Walker report, Turner review, Sir John Vickers Independent Commission on Banking Sovereign Creditworthiness: Sovereign ratings, Sovereign ability and willingness to support banking system Support and reducing the support burden: Review the different techniques for supporting a banking system, when these have been used and to what effect