framework prevalent in LICs drastically reduces the role of securities markets and increases the cost of bank lending to private … firms. Coupled with imperfect competition in the banking sector, this means that banks with chronically high excess reserves … properly, the traditional monetary transmission channels (interest rate, bank lending, and asset price) are impaired. The …

The paper analyses the empirical relationship between bank risk and sovereign credit risk in the euro area. Using … risk and bank risk, with the former being overall more important in explaining bank risk, than vice versa. The paper … focuses specifically on the impact of non-standard monetary policy measures by the European Central Bank and on the effects of …

-run historical work has uncovered a range of important stylized facts concerning financial instability and the role of credit in …

their derivative contracts, we require that they maintain a capital cushion sufficiently great that their own credit default …

-financial firm and commercial bank before the crisis, but the picture was quite different for large commercial banks States and for …) banks in emerging markets with tighter bank regulation and stronger investor protection experienced significantly less …We present new stylized facts on bank and firm leverage for 2000-2009 using extensive internationally comparable micro …

of financial integration on business cycle synchronization as a robust regularity. We use a confidential dataset on banks …

prices that banks pay for liquidity, captured here by borrowing rates in repos with the central bank and benchmarked by the … overnight index swap. We have price data at the individual bank level and, unique to this paper, data on individual banks … liquidity. We find that the price a bank pays for liquidity depends on the liquidity positions of other banks, as well as its …

This paper analyses the optimal conglomeration of bank activities. We show that the effectiveness of market discipline …

This paper studies the impact of competition on the determination of interest rates, and on banks’ risk taking … lower entry costs foster competition in deposit rates and reduce banks’ incentives to limit risk exposure. While higher …

This paper provides an explanation for the urge of banks to merge and expand scope. We build a model where bank … sufficiently profitable to give the bank the necessary ‘deep pockets’ to absorb these losses. The latter suggests that banking may … not be too competitive, and could point to a benefit of merging insofar as mergers reduce competition and deepen the banks …