supervisory data set collected by the European Central Bank that covers 26 large banks in the euro area. To assess the impact of … identify a strongly non-linear relationship between diversification of exposures, shock size, and losses due to interbank …

Recent policy discussion includes the introduction of diversification requirements for sovereign bond portfolios of … European banks. In this paper, we evaluate the possible effects of these constraints on risk and diversification in the … analysis. We then analyse the risk and diversification in the sovereign bond portfolios of the largest European banks and …

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 …

Europe’s financial structure has become strongly bank-based – far more so than in other economies. We document that an … paper concludes by discussing policy solutions to Europe’s “bank bias”, which include reducing regulatory favouritism …

Europe's financial structure has become strongly bank-based – far more so than in other economies. We document that an … paper concludes by discussing policy solutions to Europe's “bank bias”, which include reducing regulatory favouritism …

the effect of competition on realised bank risk (i.e. more intense competition and greater use of securitisation is … impact of competition on realised risk. It follows that cooperation between supervisory and competition authorities is … warranted to account for the stability implications of financial innovation and capital regulation …

This study investigates if the Troubled Asset Relief Program (TARP) distorted price competition in U.S. banking …

the LRR is no longer the binding capital constraint on them. If the LRR is lower than the average bank's IRB requirement …, the aggregate capital costs of banks do not increase. However, because the diversification makes banks' portfolios more …