We study the impact of increasingly negative central bank policy rates on banks' propensity to become undercapitalized …

When a bank experiences a negative shock to its equity, one way to return to target leverage is to sell assets. If … asset sales occur at depressed prices, then one bank's sales may impact other banks with common exposures, resulting in … explains how the distribution of bank leverage and risk exposures contributes to a form of systemic risk. We compute bank …

the value of sovereign debt and non-bank financial institutions represent the most significant risk to the functioning of …

This paper evaluates the impact of the March 2020 European Central Bank recommendation that banks do not pay dividends … or buy back shares on their market values. It documents a causal negative impact on bank share prices of around 7% during …

link between a bank's LR and the spread between its money market borrowing rate and the DFR. Banks with a higher LR offer … period in which central bank reserves did not count towards the LR exposure measure (or the denominator of the ratio). It is …

in line with the economic conditions they face. Bank responses feed back to the macroeconomic environment affecting …