We analyse the poisonous interaction between bank rescues, financial fragility and sovereign debt discounts. In our … sovereign debt discount. We introduce long term government debt, which gives rise to the possibility of capital losses on bank … intermediaries causes bond prices to drop triggering capital losses at the bank under intervention. This mechanism shows the limits …

whether government subsidies to firms affect quantity and quality of bank lending. We combine recipient firms under the … to firms are determined at the EU level. Therefore, we use it to identify bank outcomes. Banks with relationships to more … subsidized firms exhibit higher lending volumes without any significant differences in bank stability. Subsidized firms, in turn …

This paper revisits the credit spread puzzle in bank CDS spreads from the perspective of information contagion. The … models to account for information spillovers based on bank business model similarities. To capture this channel, we propose … Eurozone. Incorporating the network information into the structural model for bank credit spreads increases explanatory power …

and credit easing. The central bank controls the policy rate, i.e. the price of money in open market operations, as well … increases the size of the central bank's balance sheet, can increase real activity and prices, while a credit easing policy …

We assess the influence of competition and capital regulation on the stability of the banking system. We particularly … competitive environment affect bank monitoring choices and the effectiveness of capital regulation? Our approach deviates from the … show that competition improves the monitoring incentives of better quality banks and deteriorates the incentives of lower …

removing barriers to bank entry on bank competition and economic growth. As governments were not concerned about systemic … stability in this period, we are able to isolate the effects of bank competition from those of state implicit guarantees. We … states that retained state bank chartering policies. We argue that the fiercer bank competition following the introduction of …

take excessive risks: As competition intensifies and margins decline, banks face more-binding threats of failure, to which …, destabilizing effect of lower margins outweighs the disciplining effect of competition; moreover, a substantial rise in competition … reduces banks’ incentive to build precautionary capital buffers. A key implication is that the effects of competition on risk …