located in France, Germany, the U.K., and the U.S. under different assumptions about currency hedging. We compare these … strong impact on the degree of underinvestment whereas less political risk increases the degree of over-investment. …

We study the allocation of interest rate risk within the European banking sector using novel data. Banks' exposure to … interest rate risk is small on aggregate, but heterogeneous in the cross-section. In contrast to conventional wisdom, net worth …

non-banks are often specialised. 3) When using relative net exposures as a proxy for the "flow of risk" in the IRS market …, we find that risk absorption takes place in the core as well as the periphery of the network. 4) Among the Basel III …

situation poses to price stability. We propose to regard the central banker as a risk manager who aims to contain inflation … within pre-specified bounds. We develop formal tools of risk management that may be used to quantify and forecast the risks … of failing to attain that objective. We illustrate the use of these risk measures in practice. First, we show how to …

We discuss the notion of liquidity and liquidity risk within the financial system. We distinguish between three … the root of liquidity risk lies in information asymmetries and the existence of incomplete markets. The role of central … risk. …

We find evidence of a bank lending channel for the euro area operating via bank risk. Financial innovation and the new … ways to transfer credit risk have tended to diminish the informational content of standard bank balance-sheet indicators …. We show that bank risk conditions, as perceived by financial market investors, need to be considered, together with the …

that rather than using the single short-term, low-risk interest rate as in current official statistics, reference rates … should more closely match the risk characteristics of loans and deposits. For the euro area, imputed bank output is, on …

The paper analyses and compares the role that the tightening in liquidity conditions and the collapse in risk appetite … shocks have had a more severe impact on advanced economies, it was mainly the decline in risk appetite that affected emerging … within types of economies, with Europe being more adversely affected by the fall in risk appetite than other advanced …