market is endogenously formed. Bank assets are hit by idiosyncratic shocks drawn from a thin tailed distribution. The uneven … to be heavily indebted to other banks, their liquidation can trigger other bank failures. We find that the distribution …

intervention have stronger effects beyond borders. We provide a model of international contagion allowing for bank bailouts. While …

bank market values hardly respond to changes in the default risk of individual systemic banks. Together, however, changes …

This paper unveils a new resource for macroeconomic research: a long-run dataset covering disaggregated bank credit for …

-over effects. Building on a simple model, this paper introduces a measure of the spill-over effects that a bank generates when it … defaults. The measure is based on an explicit criterion, the aggregate debt repayments, and is bank’s specific, affected by the … bank’s characteristics and links to other banks. Such measure can be useful to a regulator to determine in which banks cash …