Date of Graduation
Bachelor of Science in Business Administration
This paper explores systemic risk and financial institutions before, during, and after the financial crisis. It focuses on Bank of America the 2nd largest bank in the United States by assets. The paper includes an introduction to systemic risk and a review of literature on systemic risk. A few traditional measures of systemic risk will be defined, such as nonperforming loans, return on assets, return on equity, earnings per share, net interest margin, and capital adequacy ratio. Finally, the paper will take a look at how these traditional measures specifically relate to Bank of America from 2006 to 2017. This time period was chosen to show how the risk measures fluctuate before, during, and after the 2008 financial crisis. This crisis is considered by many to be a time when systemic risk was relatively high in the banking sector. This study finds that systemic risk can be evaluated in many different ways. Outside forces also have an impact on systemic risk in the banking environment. Systemic risk is a financial topic that will only increase in importance as financial innovation and globalization continue to evolve.
Systemic Risks, Banks, Risk, Financial Institutions, Fiancial Crisis
Mills, J. (2018). Financial Institutions and Systemic Risk: The Case of Bank of America 2006-2017. Finance Undergraduate Honors Theses Retrieved from https://scholarworks.uark.edu/finnuht/44