Resumen 

This paper investigates bank size as a factor of the transmission of risk in the US banking sector during the Subprime crisis. Specifically, the transmission of risk is investigated in two directions; from large to small banks and from small to large banks. For this purpose, a Spatial Autoregressive model is estimated by using all US commercial banks from 2005 to 2010. Results show that while the transmission from small to large banks appears during early stages of the Subprime crisis, this transmission despairs post the pick effects of this crisis. However, the transmission from large to small banks appear latter but is long lasting being significant during the last period of the sample studied here, i.e. 2010.