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 …

In this paper we model the volatility of the spread between the overnight interest rate and the central bank policy … is the main determinant of the volatility of the policy spread, but also that private bank credit risk has become more …

Because of secrecy, little is known about the political economy of central bank lending. Utilizing a novel, hand … unprecedented government bailout of the central bank, and resulted in loss of shareholder control over the central bank. …

We show that the impact of government bailouts (liquidity injections) on a representative bank's risk taking depends on … the level of systematic risk of its loans portfolio. In a model where bank's output follows a geometric Brownian motion … and the government guarantees bank's liabilities, we show first that more generous bailouts may or may not induce banks to …

We study differences in the price paid for liquidity across banks using price data at the individual bank level. Unique … to gauge the extent to which a bank is short or long liquidity. We find that the price a bank pays for liquidity depends … occur and short banks pay more the larger is the potential for a squeeze. The price paid for liquidity is decreasing in bank …

We analyze the impact of introducing a central bank-issued digital currency (CBDC) on the operational framework of … frictional interbank market, a central bank with deposit and lending facilities, and household preferences for different liquid …" has a rather small effect on bank lending to the real economy, and hence on aggregate investment and GDP. This result …

We model EU countries' bank ratings using financial variables and allowing for intercept and slope heterogeneity. Our …