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 …

effect that extends beyond losses caused by that stock which have already been incorporated into the banks' capital positions … tends to be offset by loan loss reserves. Although the NPL stock affects banks' idiosyncratic funding costs as well, the … strongly affect the banks' interest rate pass-through. …

non-financial private sector had been originated by shadow banks. Consequently, dampening credit creation by the …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 …

percent less cyclical than other local banks. The result is credit supply-side driven and especially strong for savings banks … on financial stability and the real economy. We investigate the cyclicality of SME lending by local banks with vs … credit demand-side factors. The public mandate is set by local governments and stipulates a deviation from strict profit …

We show that credit supply shocks have a strong impact on firm-level as well as aggregate investment by applying the … one banking relationship as long as they account for only a small share of the total loan volume of their banks. The …

development of regional and double-purpose banks, i.e. savings and cooperative banks, mainly account for the differences in the … degree of centralisation. Whereas no such bank exists in the UK any longer and real savings banks in Spain have almost … disappeared, two decentralised banking groups with more than 1,400 savings and cooperative banks dominate business finance in …

Firms with credit-default swaps (CDS) traded on their debt may face "empty creditors" as hedged creditors have less … bank-firm CDS net notional and credit exposures we find that the probability of default for CDS firms drops when the effect … concentration of the firm's debt. Firms with longer credit relationships, with higher average collateral ratios of their debt, and …

. Furthermore, banks' conventional credit risk models can be modified and used for stress testing. As stress testing is exposed to … considerable model and estimation risk, banks should carry out extensive robustness checks. In sum, both system-wide and banks …This paper deals with both system-wide and banks' internal stress tests. For system-wide stress tests it describes the …