We show that negative monetary policy rates induce systemic banks to reach-for-yield. For identification, we exploit … the 26 largest euro area banking groups. Banks with more customer deposits are negatively affected by negative rates, as … higher returns. Effects are stronger for less capitalized banks, private sector (financial and non-financial) securities and …

highlight an opposite effect: higher profitability loosens bank borrowing constraints. This enables profitable banks to take …

We use a unique security-level data set to analyze correlations in bond trading of banks, their respective retail … customers and their affiliated mutual funds. Matching banks' proprietary holdings with the holdings of their funds and their … retail customers for the period 2009-2016 at the security level, we find evidence that banks sold off risky euro …

We use a unique security-level data set to analyze correlations in bond trading of banks, their respective retail … customers and their affiliated mutual funds. Matching banks' proprietary holdings with the holdings of their funds and their … retail customers for the period 2009-2016 at the security level, we find evidence that banks sold off risky euro …

affected banks and by non-affected non-bank financial institutions (NBFIs)? To answer this question, we apply a difference … that insurance companies, financial enterprises, and factoring companies - but not leasing companies - and Non-EBA banks … expand their corporate lending relative to EBA banks. In particular, NBFIs use the opportunity to expand their credit …

banks. We develop an EL model where LGD estimates are based on current collateral values and PD dynamics are estimated using … German banks do increase significantly in an adverse economic environment. The estimated expected losses are widely …

We develop a model of bank risk-taking with strategic sovereign default risk. Domestic banks invest in real projects … government's incentives to repay and therefore lowers its borrowing costs. For low levels of government debt, banks influence … default are perfectly correlated. Banks fail to account for how their bond purchases influence the government's default …