Systemic Risk in the Financial System

Topic: Systemic Risk in the Financial System

Order Description

Background
“The European Banking Authority published the results of a stress test of 123 of the EU’s banks on 26 October 2014. The project is to deduce the implications for resilience of the banking system as a whole. As was acknowledged by leading UK economists after the 2008 crisis, “the failure to foresee the timing, extent and severity of the crisis and to head it off, while it had many causes, was principally a failure of the collective imagination of many bright people, both in this country and internationally, to understand the risks to the system as a whole.” Similarly, Andy Haldane, director of financial stability at the Bank of England said “[A] conceptual problem with [Basel Accords] risk-weighting is that it takes no account of the collective consequences of banks’ asset allocation decisions.”
any theoretical, empirical and numerical work in this area is ok.
don’t use more than 3 reference paper, thanks

“Requirement: research proposal should specify (a) your research question, (b) an indication of the research literature you have consulted, (c) the research methods you intend to use, (d) an outline work plan and (e) any research ethics implications.”