This paper shows that individual beliefs on the effectiveness of formal and informal sources of risk sharing determine … access to private risk sharing networks. Moreover, we find that both types of trust associate positively with the probability … to take on financial risk for the purpose of becoming a homeowner and the related loan-to-value ratio. Our findings are …

In this paper, we examine the performance and robustness of optimised interest-rate rules in four models of the euro …

factor risk model, when augmented with reference returns, is capable of generating visually consistent return distributions …

uncertainty and possible equation misspecifications and approximations. This correction sensibly enhances the robustness of the …

and NGEU initiatives helped improve EU bonds' market liquidity from previously low levels, also reducing liquidity risk …

arbitrage, but may also give banks incentives to choose their risk models strategically. Current policy answers to this problem … include the use of risk-weight floors and leverage ratios. I show that banks for which those are binding reduce their credit … supply, which drives interest rates up, invites other banks to adopt optimistic models and possibly increases aggregate risk …

registries to examine whether the risk-return relationship holds in banking. After controlling for bank, loan, and debtor … characteristics as well as macroeconomic conditions, results indicate that a risk-return relationship in bank lending is present but …-subsidization effect of credit risk …