This paper distils three lessons for bank regulation from the experience of the 2009-12 euro-area financial crisis …. First, it highlights the key role that sovereign debt exposures of banks have played in the feedback loop between bank and …

-stage fixed-effects quantile approach, which explicitly links bank interconnectedness to systemic risk contributions. The … equity and CDS prices. We provide new evidence on how banking sector fragmentation and sovereign-bank linkages evolved over …

An important question in banking is how strict supervision affects bank lending and in turn local business activity … supervision, bank lending and business activity. We first show that the OTS replacement indeed resulted in stricter supervision of … overcome frictions in bank management, leading to more lending and a reallocation of loans. Consistent with the latter, we find …

return prospects on the long-term investment turn out to be bad. For moderate return risk, equilibria with and without bank … default coexist, and bank default is a self-fulfilling prophecy. Capital and liquidity regulation can prevent bank default and …

This paper analyzes the emergence of systemic risk in a network model of interconnected bank balance sheets. Given a … shock to asset values of one or several banks, systemic risk in the form of multiple bank defaults depends on the strength … of balance sheets and asset market liquidity. The price of bank assets on the secondary market is endogenous in the model …

previous research on the role of central banks as lenders of last resort in crises and on the real effects of bank lending and …

reporting discretion and enforcement deserve careful consideration. In addition, bank regulation through its interlinkage with …