contagion is higher for banks with weaker fundamentals. Third, interbank linkages among surviving banks further propagate the …This paper tests financial contagion due to interbank linkages. For identification we exploit an idiosyncratic, sudden … linkages act as an important channel of contagion and hold important policy implications. …

banks. We employ a machine learning technique, and build a decision tree model using a dataset of official supervisory … reporting, complemented with qualitative banking sector and macroeconomic variables. We propose a new and wider definition of …

crises. It is claimed that any such concept must integrate systemic events in banking and financial markets as well as in the … related payment and settlement systems. At the heart of systemic risk are contagion effects, various forms of external effects … rigorous models of bank and payment system contagion have now been developed, although a general theoretical paradigm is still …

The paper develops an early-warning model for predicting vulnerabilities leading to distress in European banks using … are that complementing bank specific vulnerabilities with indicators for macro-financial imbalances and banking sector …

increase in the size of the banking system relative to equity and private bond markets is associated with more systemic risk … amplification mechanism, by which banks overextend and misallocate credit when asset prices rise, and ration it when they drop. The … towards banks, while simultaneously supporting the development of securities markets …

This paper uses data on bilateral foreign exposures of domestic banking systems in order to construct early warning … both cross-country spill-overs and contagion are important factors for driving financial crises. A parsimonious model with …

or even a fully-fledged banking crisis. We find that a large current account deficit, a fall in price competitiveness …

This paper uses survey data for 29,000 households from 29 transition economies to explore how the use of banking …

We provide evidence that a weak banking sector has contributed to low productivity growth following the European … sovereign debt crisis. An unexpected increase in capital requirements for a subset of Portuguese banks in 2011 provides a … natural experiment to study the effects of reduced bank capital adequacy on productivity. Affected banks respond not only by …

the capital structure of large U.S. and European banks during 1991 to 2004. Instead, standard cross-sectional determinants … of non-financial firms' leverage carry over to banks, except for banks whose capital ratio is close to the regulatory … minimum. Consistent with a reduced role of deposit insurance, we document a shift in banks' liability structure away from …