empirical literature, i.e. the pro-cyclicality of bank profitability and the counter-cyclical response of firm default rates and …We develop a stylized DSGE model in which banks face capital regulation and their loan portfolios are subject to non … conditions, credit default and bank capitalization for the transmission of macroeconomic shocks. We fit the model to euro area …

cycle comovement increases when credit embodies public bonds held by banks, a bank financing to the public sector. However …, in the post ]WWII era, this financial backup to the public side of the economy has occurred at the expense of bank …

This paper uses data from a panel of more than 400 Italian banks for the period 2001 - 2012 to examine the main …, signalling) or non-discretionary (related to the business cycle). The results suggest that LLP in Italian banks is driven mainly … local banks: since their loans are more collateralised, their behaviour is more strongly affected by supervisory activity …

Limited liability and asymmetric information between an investment bank and its lenders provide an incentive for a bank … imposed solvency constraints on banks. However, these constraints may not survive in systems competition, as systems … international policy externality on foreign lenders of domestic banks, there will be an undersupply of such regulation. This may …

We document a strong political cycle in bank credit and industry outcomes in Turkey. In line with theories of tactical … redistribution, state-owned banks systematically adjust their lending around local elections compared with private banks in the same …

We examine financial intermediation when banks can offer deposit or loan contracts contingent on macroeconomic shocks …. We show that the risk allocation is efficient if there is no workout of banking crises. In this case, banks will shift … bad times. As a result, the present generation overinvests and banks create large macroeconomic risks for future …