The current financial crisis has sparked intense debate about how weak banks should be resolved. Despite international …

more willing to lend to SMEs. In this paper, we directly ask banks (the main providers of SME external finance) what … institutional framework play a role in banks’ decisions. To do so, we use a unique survey of banks in Argentina and Chile, two … to shape banks’ willingness to deal with SMEs. The paper shows that, despite alleged differences in the countries …

We present a network model of the interbank market in which optimizing risk averse banks lend to each other and invest … entropy, closest matching and random matching. Contagion occurs through liquidity hoarding, interbank interlinkages and fire … the stability/efficiency trade-off. Liquidity requirements unequivocally decrease systemic risk but at the cost of lower …

defaults. The measure is based on an explicit criterion, the aggregate debt repayments, and is bank’s specific, affected by the … bank’s characteristics and links to other banks. Such measure can be useful to a regulator to determine in which banks cash …

This paper uses data from a panel of more than 400 Italian banks for the period 2001 – 2012 to examine the main …, signalling) or non-discretionary (related to the business cycle). The results suggest that LLP in Italian banks is driven mainly … local banks: since their loans are more collateralised, their behaviour is more strongly affected by supervisory activity …

We examine to what extent banks’ stock market values during the 2007-2012 financial crisis were driven by increases in … the default risk of banks designated as globally systemically important by the Financial Stability Board. We find that … bank market values hardly respond to changes in the default risk of individual systemic banks. Together, however, changes …

This paper seeks to understand the interplay between banks, bank regulation, sovereign default risk and central bank … guarantees in a monetary union. I assume that banks can use sovereign bonds for repurchase agreements with a common central bank …, and that their sovereign partially backs up any losses, should the banks not be able to repurchase the bonds. I argue that …

public finances. Regimes for restructuring and restoring banks financed by bank levies and fiscal backstops seek to reduce … tax exemptions. Second, the bulk of the payments were contributed by large commercial banks and the head institutes of … savings banks and credit unions. Third, the levy had no effect on the volume of loans or interest rates for the average German …