large parts of the world. In this paper we explore the financial and the trade channel in a unified framework and quantify …, resulting in larger cumulated output losses and a prolonged crisis particularly in the UK. Stricter enforcement of bank capital …

untraded consumer goods in an uncertain productive environment, borrowing funds from a bank in either the home or the foreign … of bank failure is partly borne by taxpayers in the banks' home countries. Moreover, each bank chooses the share of its … lending allocated between domestic and foreign firms, but the bank's overall loan volume is fixed by a capital requirement set …

has important policy implications for the justification of central bank FX interventions in times of crises. According to …