banks' balance sheets; banks respond by selling assets and reducing credit provision. A highly leveraged banking sector …

We propose an algorithm to model contagion in the interbank market via what we term the credit quality channel. In … existing models on contagion via interbank credit, external shocks to banks often spread to other banks only in case of a … default. In contrast, shocks are transmitted via asset devaluations and deteriorations in the credit quality in our algorithm …

The US credit boom has been identified as one of the causes of the global financial crisis and the resulting debt … overhang is seen as the primary reason for the weak economic recovery. Most of the existing literature links the credit boom to … non-financial private sector had been originated by shadow banks. Consequently, dampening credit creation by the …

This paper introduces a new transmission channel of banking crises where sizable cross-border bank claims on foreign … that see banking crises originating from either domestic credit booms or from cross-border borrowing. I propose a combined …

credit growth and the severity of the financial crisis, we find that countries with stronger FSCs are more likely to use the … CCyB, especially relative to countries where a bank regulator or the central bank has the authority to set the CCyB. While …

inter-polates between these two extremes. We then test the capability of these modelsto predict actual bank defaults (and …

A bank's decision on loan supply and capital structure determines its immediate bankruptcy risk as well as the future … availability of internal funds. These internal funds in turn determine a bank's future costs of external finance and future …-to-asset ratios, liquidity coverage ratios and regulatory margin calls on the dynamics of loan supply and bank stability. Only …

regional factors, the loans' maturity structure is found to drive the bank-wide loss rates in the credit portfolio. (ii) The …Using a unique data set on German banks' loans to the German real economy, we investigate banks' credit risk. This data … set includes the volume of loans per bank and industry as well as the corresponding write-downs. Our empirical study for …