loan scale. A financial crisis, simulated as an abrupt decline in the collateral value of bank assets, triggers a flight to …

The paper studies the central bank collateral framework and its impact on banks’ liquidity under an adverse stress test … four funding channels: unsecured loans, asset sales, private repurchase agreements, or Central Bank lending. We test three … highlight the heterogeneous effects across different jurisdictions and financial institutions. We find that bank equity losses …

We show that a reduction in lender of last resort (LOLR) policy uncertainty positively affects bank lending and … between private market and central bank security valuations - plays a key role in the propagation of the shock to lending and …

This paper examines common regulation as cause of interbank contagion. Studies based on the correlation of bank assets … that banks have a common regulator. In our model, the failure of one bank can undermine the public's confidence in the … forbearance to the initially failing bank in the hope that it - and hence other vulnerable banks - survives. By contrast, public …

estimated while controlling for the macroeconomic environment. An increase in bank' balance sheet risk is shown to increase the …

We contribute to the empirical literature on the impact of shocks to bank capital in the euro area by estimating a … economy, namely a demand shock and a shock to bank capital. The main findings of the paper are as follows: i) Impulse …-response analysis shows that in response to a shock to bank capital, banks boost capital ratios by reducing their relative exposure to …

We study how the consequences of violations of covenants associated with bank lines of credit to firms vary with the … the heart of a new bank liquidity channel. This channel complements the traditional bank lending channel, which focuses on …

How do capital and liquidity buffers affect the evolution of bank loans in periods of financial and economic distress … relates macroeconomic aggregates to individual bank balance sheet items and interest rates. We find that banks with high … liquidity buffers also affect bank responses to monetary policy shocks. High bank capitalisation reduces the degree to which …