This paper studies the impact of cyclical systemic risk on future bank profitability for a large representative panel … risk predict large drops in the average bank-level return on assets (ROA) with a lead time of 3-5 years. Based on quantile … local projections we further show that the negative impact of cyclical systemic risk on the left tail of the future bank …

We analyse the impact of standard and non-standard monetary policy measures on bank profitability. For empirical … monetary policies on market-based measures of expected bank profitability and credit risk, by employing an event study analysis … identification, the analysis focuses on the euro area, thereby exploiting substantial bank and country heterogeneity within a …

We analyze the impact of efficiency on bank risk. We also consider whether bank capital has an effect on this … supporting the bad management and efficiency version of the moral hazard hypotheses. In contrast, bank efficiency improvements … contribute to shore up bank capital levels. Our findings suggest that banks lagging behind in their efficiency levels might …

This paper decomposes the time-varying effect of exogenous exchange rate shocks on euro area countries inflation into … quarters of the past six years, especially in turning point periods. Our main results indicate that headline inflation in euro … inflation this increasing sensitivity is solely reliant on a sustained surge in the degree of comovement, for energy inflation …

In this paper, we develop an analytical framework for conducting forward-looking assessments of profitability and … developments and stochastic claims. The model highlights the potential threats to insurers solvency and profitability stemming from …

investment in a model in which firms borrow from both bank and non-bank lenders. The bank funds loans with insured deposits and … competitively price loans. A tight capital requirement on the bank reduces risk-shifting and decreases bank leverage, reducing the … risk of costly bank failure. In response, though, the bank can change both price and non-price contract terms. This may …

from the canonical bank-runs: it may lead to runs of intermediaries on each other through firesales in the money market. I …