hedge to fund drawn credit lines and other commitments. We shed new light on this issue by studying the behavior of bank …

banks. When bank default risk becomes significant, retail deposit insurance creates an asymmetry between banks that operate …

. For an international sample of banks, this paper investigates the impact of government indebtedness and deficits on bank … stock prices and CDS spreads. Overall, bank stock prices reflect a negative capitalization of government debt and they … valuation in countries running large fiscal deficits. Furthermore, the change in bank CDS spreads in 2008 relative to 2007 …

particular, we show that the stock market applies far greater discounts to a bank’s real estate loans and mortgage … suggests that bank balance sheets overvalue real estate related assets during economic slowdowns. Estimated discounts are … impairment. We also find that bank share prices, especially for banks with large exposures to mortgage-backed securities, react …

This paper examines the implications of bank activity and short-term funding strategies for bank risk and return using …, however, attract most of their short-term funding in the form of non-deposits at a cost of enhanced bank fragility. Overall …

real activity. Bank state aid multipliers are in the same range as conventional fiscal spending multipliers. Support for …