Systemic risk of systemically important financial institutions in the post‐2008 global financial crisis era: A tail risk network analysis
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We examine the systemic risk of 46 systemically important financial institutions (SIFIs), that is, 34 global systemically important banks (G‐SIBs) and 12 global systemically important insurers (G‐SIIs) between 2010 and 2023. We use tail risk network‐based systemic risk measures for SIFIs. We find that G‐SIBs' systemic risk is driven by various shocks, including the 2011–2012 Eurozone crisis, the 2018–2019 US–China trade tensions, and the 2023 US regional bank crisis. In contrast, G‐SIIs' systemic risk is largely driven by the 2020 COVID‐19 pandemic. Moreover, the distribution and correlation of systemic risk for G‐SIBs and G‐SIIs vary significantly across jurisdictions. We also find a bidirectional causal relationship between G‐SIBs' and G‐SIIs' systemic risk. Our findings have important implications for the tail risk independence and stability of the financial system.
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Post-2008 reforms have enhanced banking resilience, but systemic vulnerabilities remain due to expansion of shadow banking and digital financial intermediation.
“Recent studies have argued that the post-2008 reforms have enhanced banking resilience, but that there are still systemic vulnerabilities due to the expansion of shadow banking and beyond digital financial intermediation (Sun, 2025).”
From The Interactions Between Political Economy and Global Financial Crises: A Case Study of the 2008 Global Recession (2026) · cites this paper as Sun, 2025
The Introduction and section 2.1 say post-2008 reforms made the financial system more resilient. The Conclusion says digital innovations create new risks and calls for research on fintech and big tech. Our copy does not link remaining systemic vulnerabilities to an expansion of shadow banking; the only exact match for “shadow banking” is in the References. (LLM, conf=0.88)
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Hochmair, H. H., Wang, X., & Hamid, M. B. A. (2026) · International Academic Journal of Economics · doi:10.71086/iaje/v13i1/iaje1305
- Authors
- Sun, T.
- Affiliations
- Lingnan University (HK)
- Corresponding author
- Sun, Tao
- ORCID
- Sun, Tao
- Venue
- Journal of Risk and Insurance
- Publisher
- Wiley
- Published
- 2025-10
- Volume
- 92
- Issue
- 4
- Pages
- 950-977
- ISSN
- 0022-4367 (ISSN-L)
- 1539-6975
- OpenAlex
- W4414702140
- Cited by
- 6
- References
- 0
- Citations by year
- 2026: 6
- FWCI
- 4.17
- Type
- journal article
- Language
- en
- Open access
- hybrid
- doi.org
- Licence
- Locations
- Journal of Risk & Insurance (publishedVersion, cc-by-nc-nd)
- SSRN Electronic Journal (acceptedVersion)
- Funders
- Lingnan University (13501922)
- Topics
- Social Sciences › Economics, Econometrics and Finance › Finance › Banking stability, regulation, efficiency
- Social Sciences › Economics, Econometrics and Finance › Finance › Global Financial Regulation and Crises
- Social Sciences › Economics, Econometrics and Finance › Finance › Financial Risk and Volatility Modeling
- Keywords
- systemic risk, systemically important financial institutions, global systemically important banks, eurozone crisis, US-China trade war, COVID-19 pandemic, financial stability, post-2008 financial crisis
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