decline in liquidity, trading and price efficiency of medium-sized banks’ stocks relative to other stocks. …-sized banks, these being generally less internationally diversified and more reliant on official support. We show that the ban … helped stabilise the credit risk of medium-sized banks, especially those more exposed to short-sellers’ activity, but not …

reduce loan granting, especially to firms or from banks with lower capital or liquidity ratios. Moreover, responding to … applications for the same loan, weak banks are less likely to grant the loan. Our results suggest that firms cannot offset the … resultant credit restriction by turning to other banks. Importantly the bank-lending channel is notably stronger when we account …

of the model to characterize contagion among the ten series. Our procedure allows the country that triggers contagion in … sovereign debt crisis, contagion has played a non-negligible role in the European peripheral countries, which confirms the …

allowed to depend on macroeconomic conditions as well as on unobservable credit risk factors, which can capture contagion …

While banks may change their credit supply due to bank balance-sheet shocks (the local lending channel), firms can … identify the aggregate (firm-level) effects of the lending channel and estimate the impact of banks’ ability to securitize …

This paper investigates the presence of liquidity premia in the relative pricing of assets traded on the Spanish … liquidity. Second, we estimate liquidity premia, including liquidity parameters in the estimation of the zero-coupon yield curve …. The results suggest the existence of a liquidity premium for post-benchmark bonds (both strippable and non-strippable). …

busts, and analyses equity market reforms and excess liquidity as potential drivers of these stock price misalignments. Our … liquidity, seem to have significantly contributed to these misalignments. …