European banks have been criticized for holding excessive domestic government debt during the recent Eurozone crisis …, which may have intensified the diabolic loop between sovereign and bank credit risks. By using a novel bank-level dataset … covering the entire timeline of the Eurozone crisis, I first re-confirm that the crisis led to the reallocation of sovereign …

holdings in response to non-standard monetary policy shocks, thereby possibly promoting the sovereign-bank nexus, i.e. the …

', 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 … escalation. Capital market reactions would offset the benefits of monetary autonomy and much delay the recovery …

We explore how changes in capital-based macroprudential regulation in the euro area affect the exposure of national … banking sectors to domestic government debt, thus strengthening or weakening the sovereign-bank nexus. To do so, we construct … ”periphery” countries. Our main finding suggests that an unsystematic capital-based macroprudential policy tightening increases …

This paper analyses technical efficiency of European banks over the period 1996-2003 with unbalanced panel data …