After the collapse of Lehman Brothers, a rapid and far-reaching shrinkage of international banks’ assets with a focus … on foreign claims took place. For the largest 67 German banking groups, we find that both their characteristics and … behavior in the pre-crisis episode had repercussions for the crisis period. Above all, prior non-traditional banking activities …

the emergence of the shadow banking system. This paper shows that the largest part of the shadow banking system merely … transforms existing financial claims against ultimate borrowers that have been originated by traditional banks. Based on … non-financial private sector had been originated by shadow banks. Consequently, dampening credit creation by the …

one banking relationship as long as they account for only a small share of the total loan volume of their banks. The … access to alternative financing sources. For the economy as a whole, granular shocks in the banking system account for around …

This study finds that equity returns in the banking sector in the wake of the Great Recession and the European … deteriorating funding conditions and investor sentiment. While the equity return performance in the banking sector has been dismal … in general, better capitalized and less leveraged banks have outperformed their peers, a finding that supports …

We use a unique data set that comprises each bank’s bids in the Eurosystem’s main refinancing operations and its … recourse to the LOLR facility (a) to derive banks’ willingness-to-pay for liquidity through a one-week repo and (b) to show … that a bank’s willingness-to-pay is a good indicator for the probability that this bank draws on the LOLR facility. Our …

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

banks in the time period between 1995 and 2013, before the Basel III liquidity regulation to address excessive maturity …. Using a dataset that contains information on critical events of German banks, we find that financing loans using fewer … customer deposits would have been associated with a higher probability of financial distress for savings banks and credit …

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

We study how contingent capital affects banks' risk choices. When triggered in highly levered states, going …