first. Next, a ‘fundamental' bank valuation model is introduced. Based on sound economics and finance principles, it allows …

tests, asking do they add value to the information available in the bank capital ratios observed at the start of the stress … holding of domestic government bonds all require a bank-specific approach in the supervisory review and evaluation process …

on corporates and the existence of a ‘bank tax'. These are complementary to the four explanations offered in the … (ESBies) by banks in low-rated countries. Bank regulations such as constraints on large exposure or risk-based capital on …

The bank literature has documented theoretical and empirical evidence of a “diabolic loop” in the sovereign-bank nexus … contributing to bank stability. But will a supply of ESBies create its own demand? The paper offers two new explanations for the … home bias in banks' government bond holdings: a sovereign-based rating cap on banks and the existence of a ‘bank tax …

The bank literature has documented theoretical and empirical evidence of a “diabolic loop” in the sovereign-bank nexus … sovereign diversification, hence contributing to bank stability. But will banks in low-rated countries invest in safe bonds … and the existence of a ‘bank tax’. These are complementary to the four explanations offered in the literature: risk …