setup in the United States underscore the importance of enhancing systemic risk oversight and building effective …

.S. banking landscape, banking system assets represent only about 22 percent of total financial system assets. The systemic risk …

This paper examines the macroeconomic implications of sovereign credit risk in a business cycle model where banks are … generates a precautionary motive for banks to deleverage (risk channel). I estimate the model using Italian data, finding that i …) sovereign credit risk was recessionary and that ii) the risk channel was sizable. I then use the model to evaluate the effects …