conditions, credit default and bank capitalization for the transmission of macroeconomic shocks. We fit the model to euro area … empirical literature, i.e. the pro-cyclicality of bank profitability and the counter-cyclical response of firm default rates and …

indeed been succesful in stimulating the credit flow of banks to the private sector. Second, we find support for the "bank … effect). The role of bank capital is, however, ambiguous. Besides the above favorable direct effect on loan supply, lower … levels of bank capitalization at the same time mitigate the size, retail and liquidity effects of the policies. The drag on …

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 … cheaply, effectively shifting the risk of some of the potential sovereign default losses on the common central bank. …

', if fiscal consolidation is combined with a program for bank recovery and for competitiveness and growth. The second … benign exit from the Eurozone with stable investor expectations could substantially dampen the short-run impact …

short-run liquidity effect after an interest rate innovation, that is additional bank loans are generated by a greater …