The role of competition, innovation, and regulation on financial intermediary risk

Purpose This macroeconomic analysis chronicles the risk behavior of market-based financial intermediaries and traditional depository institutions from 1980 to 2010 and assesses the role that competition, financial innovation and regulation played in their evolving risk behaviors. The paper aims to discuss these issues. Design/methodology/approach Using a two-part CAPM framework in line with Campbell et al. (2001), risk measures are constructed...