This publication collects the papers presented at the workshop entitled "The sovereign debt crisis and the euro area … Area of the Bank of Italy has conducted several analyses on the impact of the sovereign debt crisis on the financial system … mechanisms whereby the tensions in the government bond markets due to the sovereign debt crisis were transmitted to the banking …

the aftermath of the global crisis started in 2008, affording special consideration to rules and institutions. Session 1 …

Italian employment is likely to remain well below its pre-crisis level in the coming quarters. …

(2008-09), compared with a previous time of growth (2006-07). Once transition matrices were linked to interest rates, banks … and recession. However, the uncertainty generated by the crisis accentuated the unexpected component of credit worsening …-average ability in calibrating rates to risk during the crisis; banks with a stronger relationship with borrowers smoothed the risk …

relationship banks gather information on their borrowers, which allows them to provide loans for profitable firms during a crisis … firms in a crisis. Using detailed credit register information for Italian banks before and after the Lehman Brothersï …¿½ default, we are able to study how both types of bank responded to the crisis and we test existing theories of relationship …

influenced by banks’ size while bank localism was not significant. During the crisis, the loan default rate was substantially …