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 …

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 …

bank stock underperformance suggest that government-funded bank recapitalizations can often lead to substantial taxpayer …

by the following types of bank financial distress: 1) low equity ratio; 2) low Tier 1 capital ratio; and 3) losses on …

bank health and the consequences for aggregate productivity in 11 European countries. Controlling for cyclical effects, the … Europe may at least partly stem from bank forbearance. The increasing survival of zombie firms congests markets and … around one-third of the impact of zombie congestion on capital misallocation can be directly attributed to bank health and …

framework were more likely to require public support during the crisis. We instrument some characteristics of bank balance … sheets with these prudential indicators to investigate how they affect bank resilience. The share of non-interest income …