natural experiment to study the effects of reduced bank capital adequacy on productivity. Affected banks respond not only by …

both bank and country-level data. As outright bank failures have been rare in Europe, the paper introduces a novel dataset … are that complementing bank specific vulnerabilities with indicators for macro-financial imbalances and banking sector … vulnerabilities improves model performance and yields useful out-of-sample predictions of bank distress during the current financial …

frictions in which bank assets are a portfolio of defaultable loans. We show that ex-ante imperfect diversification of bank … lending generates bank asset returns with limited upside but significant downside risk. The asymmetric distribution of these … returns and their implications for the evolution of bank net worth are important for capturing the frequency and severity of …

The primary driver of commercial bank failures during the Great Recession was exposure to the real estate sector, not …

multivariate framework. We find that taking into account jointly domestic and global macrofinancial vulnerabilities greatly …