coordinated ones when governments care equally about bank profits, taxpayers, and consumers. …

imply that an individual bank failure in one country could trigger negative spillover effects in another country. Such cross … from a supranational perspective. In consequence, the probability of a bank failure will be inefficiently high. Against the …

ratio) and size (TBA) of the industry are linked to lower sovereign risk in general. Foreign bank penetration and …

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 bank's 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 …

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 …