We show that international consumption risk sharing is significantly improved by capital flows, especially portfolio … markets. This is consistent with the view that the prospect of retaliation may deter expropriation of foreign capital, even in …, capital flows headed for closed economies with poor institutions are designed and constrained so as to limit the cost incurred …

and trends in the euro area banking sector in terms of the degree of homogeneity of countries. We find that in the period … 1998-2004 the banking sectors in the euro area countries seem to have become somewhat more homogeneous, although the …

banking systems have been characterised by strong implicit insurance operating through the expectation of public intervention …

liabilities is a function of risk-return considerations and excess domestic credit demand. An increase in political risk is shown … to be associated with a build-up of foreign positions by the banking sector, but this adverse effect on the banking … determinants of foreign assets and liabilities are estimated separately, with risk-induced capital flight being moderated by a high …

about the banking sector's loss-bearing capacity. Macro stress testing has proved a useful instrument to help identify … potential vulnerabilities within the banking sector and to gauge its resilience to adverse developments. To support its …

The empirical literature on systemic banking crises (SBCs) has shown that SBCs are rare events that break out in the … midst of credit intensive booms and bring about particularly deep and long-lasting recessions. We attempt to explain these … phenomena within a dynamic general equilibrium model featuring a non-trivial banking sector. In the model, banks are …

to estimate the effects of bank financial distress on consumer credit and consumption expenditures. We show that …