institutions. We apply our framework to a cross section of individual bank data as they are usually collected at the central bank … consequences of macroeconomic shocks for bank insolvency risk. In particular we consider interest rate shocks, exchange rate and … domino effects from bank defaults are taken explicitly into account. The model determines endogenously probabilities of bank …

We analyze the impact of capital adequacy regulation on bank insolvency and aggregate investment. We develop a model of … credit relations as a consequence of bank liquidity management and an insolvency mechanism. This allows us to study the …