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Discrete Dynamics in Nature and Society
Volume 2016, Article ID 2967830, 5 pages
http://dx.doi.org/10.1155/2016/2967830
Research Article

Does Diversification Affect Banking Systemic Risk?

School of Economics and Management, Southeast University, Nanjing 211189, China

Received 14 July 2016; Accepted 6 November 2016

Academic Editor: Ricardo López-Ruiz

Copyright © 2016 Shouwei Li. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

This paper contributes to the understanding of the linear and nonlinear causal linkage from diversification to banking systemic risk. Employing data from China, within both linear and nonlinear causality frameworks, we find that diversification does not embody significant predictive power with respect to banking systemic risk.