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Anand, Kartik; Mankart, Jochen - 2020

We develop a model of bank risk-taking with strategic sovereign default risk. Domestic banks invest in real projects and purchase government bonds. While an increase in bond purchases crowds out profitable investments, it improves the government's incentives to repay and therefore lowers its...

Persistent link: https://www.econbiz.de/10012301195

Changing forces of gravity : how the crisis affected international banking

Buch, Claudia M.; Neugebauer, Katja; Schröder, Christoph - 2013

The global financial crisis has brought to an end a rather unprecedented period of banks’ international expansion. We … analyze the effects of the crisis on international banking. Using a detailed dataset on the international assets of all German … banks with foreign affiliates for the years 2002-2011, we study bank internationalization before and during the crisis. Our …

Persistent link: https://www.econbiz.de/10010211966

International banking and liquidity risk transmission : lessons from across countries

Buch, Claudia M.; Goldberg, Linda S. - 2014

financial crisis. Yet, we know little about the actual magnitudes and mechanisms for transmission of liquidity shocks through …

Persistent link: https://www.econbiz.de/10010393856

Cross-border prudential policy spillovers : how much? how important? : evidence from the international banking research network

Buch, Claudia M.; Goldberg, Linda S. - 2017

The development of macroprudential policy tools has been one of the most significant changes in banking regulation in recent years. In this multi-study initiative of the International Banking Research Network (IBRN), researchers from 15 central banks and 2 international organizations use...

Persistent link: https://www.econbiz.de/10011595267

Cross-border lending and the international transmission of banking crises

Dieckelmann, Daniel - 2020

countries with high domestic crisis risk enable contagion to the home economy. This asset-side channel opposes traditional views …

Persistent link: https://www.econbiz.de/10012242495

Optimal sovereign default

Adam, Klaus; Grill, Michael - 2013

When is it optimal for a government to default on its legal repayment obligations? We answer this question for a small open economy with domestic production risk in which contracting frictions make it optimal for the government to finance itself by issuing non-contingent debt. We show that...

Persistent link: https://www.econbiz.de/10009733001

Selective default expectations

Accominotti, Olivier; Albers, Thilo N. H.; Oosterlinck, Kim - 2023

This paper explores how selective default expectations affect the pricing of sovereign bonds in a historical laboratory: the German default of the 1930s. We analyze yield differentials between identical government bonds traded across various creditor countries before and after bond market...

Persistent link: https://www.econbiz.de/10014495920

Sovereign risk, interbank freezes, and aggregate fluctuations

Engler, Philipp; Große Steffen, Christoph - 2014

statistics alongside stylized facts during the European sovereign debt crisis. …

Persistent link: https://www.econbiz.de/10010457126

Bank use of sovereign CDS in the eurozone crisis : hedging and risk incentives

Acharya, Viral V.; Gündüz, Yalın; Johnson, Tim - 2018

the European sovereign debt crisis of 2008-2013. Banks used the sovereign CDS market to extend, rather than hedge, their … aggressively at the onset of the crisis, but started covering their positions at its height while simultaneously shifting their …

Persistent link: https://www.econbiz.de/10011888333

The fire-sale channels of universal banks in the European sovereign debt crisis

Bagattini, Giulio; Fecht, Falko; Weber, Patrick - 2019

European sovereign debt crisis. Overall, this enabled banks with affiliated mutual funds to sell off larger amounts of their …

Persistent link: https://www.econbiz.de/10012125233